On Thursday, the stock indices showed a single positive trend and closed in green zone. The Dow Jones rose 0.27% (20663.02), S&P 500 added 0.37% (2365.72), the Nasdaq rose 0.73% (6055.13). European markets were down in the single dynamics. Germany's DAX slid 0.33% (12590.06), the British FTSE 100 fell 0.89% (7436.42).
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 15:00 MSK Speech of ECB, Constancio
At 15:30 MSK Basic consumer price index (CPI) of Canada in April
At 15:30 MSK index core retail sales in Canada for March
At 16:15 MSK FOMC member Bullard speaks
At 20:00 MSK the Number of drilling rigs from Baker Hughes
European markets continued descend at the trading session on Thursday. The second wave of correction came to markets of the Old world against the background of political instability in the United States. The most significant decline was observed among companies of the financial and commodity sectors. During two days the British FTSE 100 went down from a historical high of 7535 to the nearest strong resistance level of 7400. There is a high likelihood of further consolidation in this area.
Yesterday the stock market of the United States showed an upside correction after a huge drop on Wednesday. Investors ' attention has shifted from political tensions to the corporate reports and publication of macro-economic data. Positive news from the labour market has been encouraging buyers. The number of initial claims for unemployment benefits decreased by 4 thousand, contrary to forecasts of analysts, who expected a growth. Also the index of business activity FRB of Philadelphia has made a hike of 16 points, reaching a value of 38.8, and at the same time, the consensus forecast talked about reduction for 19.5 points.
Papers of high-tech sector recovered faster than others. What was confirmed with the growth of the Nasdaq. During the day the index of wide market S&P 500 was so near to the next resistance level of 2380, but the buying determination was not enough. It is likely that the new range in which the S&P 500 is going to trade in the near future, is between the 2330 and 2380.
There are more reasons for growth, rather than decline for oil futures now. The upward movement continued during session of yesterday and this morning also. An outstanding event was the statement of Saudi Arabia as coordinator to take responsibility for the shortcomings of the implementation of the Vienna agreement OPEC+ and cover for its account. Such a step can emphasize the confidence in the continuation of the cartel agreement of production cuts. It is likely that oil will continue to rise and will close both the current and the following week in the green zone. The nearest resistance level can be a value of $51,20 per barrel for WTI. Today, investors will consider the number of active drilling rigs, published by Baker Hughes.
Sincerely, Global FX chief analyst Sergey Melnikov.