Stock indices yesterday showed no single dynamics and closed mixed. The Dow Jones lost 0.17% (20975.78), S&P 500 fell by 0.10% (2396.92), the Nasdaq rose 0.29% (6120.59). European stocks showed uniform growth and closed positively. The German DAX added 0.43% (12749.12), British FTSE 100 rose 0.57% (7342.21).
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 15:00 MSK the ECB President Draghi
At 15:30 MSK the Index of export prices for April
At 15:30 MSK the Index of import prices for April
At 17:30 MSK crude oil Inventories
At 17:30 MSK the Data on excess reserves of oil in Cushing (Oklahoma)
At 19:00 MSK FOMC member Rosengren
At 20:00 MSK the Auction on placement of 10-year Treasury notes USA
At 21:00 MSK the Report on execution of the Federal budget for April
The US President Donald Trump caused a political firestorm on Tuesday, firing the FBI Director James Komi. He led the investigation of possible collusion Trump with Russia in the presidential campaign of 2016, with the aim to influence the outcome of elections. On this news, the national currency began to lose , and the cost of defensive assets began to move up.
The head of the Bank of Japan Haruhiko Kuroda as if responding to this event. Wednesday morning he said that the events abroad , such as uncertainty about US economic policy and geopolitical risks in the world, were the biggest risks for the economic recovery of Japan. Kuroda said: "economic Recovery in Japan is usually carried out more decisively."
More regular statements of representatives of the Federal Commission on open market about increasing the key rate in June increase the probability of this event. Esther George, the President of Kansas city, said that the slowdown in the beginning of the year is not a reason to reduce the pace of rate hikes. President FRB of Boston Eric Rosengren said that the current rates are lower than necessary. Italladdsfactorstostrengthenthedollar.
There is evidence of rising oil supplies from Libya to the level of a record for 2 years. The news inhibits the correction and puts pressure on prices down. In turn, the power lifting up is having the message about prolongation of the agreement OPEC+ for a period more than expected. Today investors will appreciate the news on changes in stocks in America.
Sincerely, Global FX chief analyst Sergey Melnikov.