Macro economics

Market analysis for May 12, 2017

Yesterday stock markets of America declined in single dynamics and closed in negative territory. The Dow Jones declined by 0.11% (20919.42), S&P 500 fell 0.22% (2394.44), the Nasdaq lost 0.22% (6115.96). On the European exchanges single dynamics was not observed, the indices closed mixed. Germany's DAX was down 0.36% (12711.06), British FTSE 100 added 0.02% (7386.63).

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 09:00 MSK the consumer price Index (CPI) in Germany in April

At 09:00 MSK German GDP for April

At 09:45 MSK , the unemployment claims in the non-agricultural sector of France for the first quarter

At 15:30 MSK Base the consumer price index of America in April

At 15:30 MSK Base index of retail sales America April

At 15:30 MSK , retail sales America April

At 17:00 MSK  the Index of consumer sentiment of Michigan University of America in may

At 19:30 MSK FOMC member Harker speaks

At 20:00 MSK the Number of drilling rigs from Baker Hughes

Yesterday statistics of the number of initial claims for unemployment benefits supported the stock market of America. The index decreased by 2 thousand, it is better than expected growth for 11 thousand. Thus the continued improvement of  the labour market brings the increase in the key rate in June, as it is for the fed to be the main factor of economic growth and the reason for monetary tightening. Also, the producer price index in April rose 0.5%, it was above analysts ' forecasts of 0.2%, and on the background of the March decline it says about the steady growth.

On the background of positive macroeconomic data the dollar strengthened significantly. The main currency pair EUR/USD went down, reaching the point of 1,084. But the strength of the European currency not given the opportunity to gain a foothold at these levels.

Macro statistics was unable to help buyers close morning gap completely in the stock market. The index of wide market S&P 500 during the day was below the lower limit of the range of side movement 2380-2400 in which it is consolidating within the last 2 weeks. It is likely to see impulse of volatility in the coming days and perhaps the index will reach new highs. But now investors reduced long positions in US equities amid terrifying reports. One of the leading outsiders was the company Snap, which owns the popular messaging app Snapchat. IT holding lost in capitalization 20.3% after a report a net loss of 2.21 billion or of 2.31 dollars per share. The analysts expected a decline of 21 cents per share.

The past week was positive for the cost of black gold. There was good news about a possible OPEC+ treaty extension for a period of more than six months. Also, the inventory reduction in the U.S. exceeded analysts’ expectations greatly. Yesterday, positive was added by the news about the desire of Saudi Arabia to reduce oil exports to Asia. It is likely that the quotes are coming from a local bottom, and it is possible to see the growth next week. Today the investors will assess data on the rig count from Baker Hughes.

 

Sincerely, Global FX chief analyst Sergey Melnikov.

May
Mon Tue Wed Thu Fri Sat Sun
29 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1 2

Interest rates

Country Rate Value
USA Federal Funds 0,25 %
Switzerland 3 Month LIBOR Range -0.75 %
United Kingdom Repo Rate 0,10 %
EU Refinancing Tender 0,00 %
Japan Overnight Call Rate -0,10 %
New Zealand Official Cash Rate 0,25 %
Australia Cash Rate 0,25 %
Canada Overnight Rate Target 0,25 %
All rates
This site uses cookies to store information on your computer. Some of these cookies are essential to make our site work and others help us to improve by giving us some insight info how the site is being used.