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.