Tuesday the stock indices of the United States showed strong growth in single dynamics and closed in the green zone. The Dow Jones gained 0.73% (20701.50), S&P 500 climbed 0.73% (2358.57), Nasdaq increased its value by 0.60% (5875.14). European markets also showed growth. The German DAX index jumped by 1.28% (12149.42), British FTSE 100 down 0.68% (7343.42).
Today it is expected a few publications of the macroeconomic data and the speeches of the monetary authorities that could affect investors' decisions during the trading sessions.
At 02:50 MSK the Volume of retail sales in Japan in February
At 17:00 MSK pending home sales in the US real estate market for February
At 17:30 MSK crude oil Inventories USA
At 17:30 MSK the Data on excess reserves of oil in Cushing (Oklahoma)
At 18:30 MSK FOMC member Rosengren speaks
At 19:50 MSK speech by a member of the ECB Prata
At 20:15 MSK FOMC member Williams speaks
Today it will be given a letter from the Prime Minister of great Britain Theresa May to the head of the European Council, Donald Tusk, about the start of Brexit. In accordance with the rules mentioned in the 50th article of the Lisbon Treaty, the UK will have to withdraw from the European Union within two years up to 29 Mar 2019. It will be the first precedent in history for such situations there are no any written legal provisions. All of those circumstances threaten a long period of uncertainty for the United Kingdom.
Buyers on the US stock market are celebrating the victory for the second day. After a strong gap down at the opening of this week growth is gaining power. Low levels for purchases contribute to and sufficiently, as well as statements of representatives of political and monetary authorities. President Donald Trump will not lose hope in reaching a compromise in Congress between Democrats and Republicans, as well as within the faction, in the issue of new health programs. Within seven years, Republicans tried unsuccessfully to cancel the program Obamacare, now when they have a President and majority in Congress, they could not agree among themselves. Recent statements of representatives of the Federal Reserve and Chairman Janet Yellen allow the market to understand that the rate may be raised more than 2 more times before the end of the year, as previously planned. One reason for this is the apparent acceleration of economy growth, as it was evidenced by positive macro statistics. For example, the consumer confidence index released yesterday showed growth to maximum for 16 years of 125.6 points when it was expected level 113,9.
Oil significantly increased in price over the past session, rushing to the upper limit of the current range $46,50-49,50 barrel for WTI. The production stoppage in Libya was a reason for this, it reduced the offer on 500 thousand barrels a day. Also it was the statement the Minister of oil of Iran Bidzhan Savane about the renewal of the Vienna Treaty to the end of the year. And another increase in US inventories is not having a visible pressure for oil prices.
Sincerely, Global FX chief analyst Sergey Melnikov.