On Monday, the stock indices of the United States showed no single dynamics and closed mixed. The Dow Jones fell by 0.13% (20913.46), S&P 500 grew by 0.17% (2388.33), Nasdaq increased by 0.73% (6091.60). European markets were closed yesterday and on the last working day, Friday, trading was in a negative territory with lightly visible dynamics. The German DAX lost 0.05% (12438.01), British FTSE 100 slid 0.46% (7203.94).
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 07:30 MSK the RBA Decision on interest rates
At 10:30 MSK the PMI Switzerland CORE
At 10:50 MSK the Index of business activity in the manufacturing sector (PMI) in France in April
At 10:55 MSK the Index of business activity in the manufacturing sector (PMI) in Germany in April
At 11:00 MSK the Index of business activity in the manufacturing sector (PMI) in the Eurozone in April
At 11:30 MSK the Index of business activity in the manufacturing sector (PMI) in the UK in April
At 12:00 MSK the unemployment rate in the Eurozone in March
Major European and Asian stock exchanges were closed yesterday in accordance of celebration of Labor Day. Today investors go back to trading with new forces.
During the visit of German Chancellor Angela Merkel to Saudi Arabia, it became known that the Kingdom is interested in the services of the German companies SAP and Siemens. They are encouraged to fulfill an important mission for the "digital transformation" of the country. Perhaps after the news of that the capitalization of these companies will increase and the opening of today's trading session will be with the gap.
Statistics of USA are not happy market participants again. Personal spending remained unchanged, while the forecast was a growth by 0.2%. If look at previous months, there was a slowdown in the growth rate.
Important news yesterday was the preliminary agreement Democrats and Republicans in Congress over the budget until the end of the 2017 financial year, i.e. until September 30. The amount exceeded $ 1 trillion dollars. The final vote for the bill appointed for Wednesday. This may be the first law to be adopted by Congress with the new President. After the failure of the health insurance, the project budget may be the beginning for Donald Trump. A compromise among the conditions that had to accept the President is the transfer of costs of construction of the wall on the Mexican border for the next fiscal year.
On this news, the market reacted by reducing the cost of defensive assets. Gold fell to the lowest level in three weeks, reaching the price of $ 1255 ounce. There is a possibility that the correction in the yellow metal will continue.
In the oil market correction is already continues for the third week, though a slowdown. Black gold is going through a new range $ 48,20-54,75 per barrel for WTI. There are not yet strong drivers for movement to the one direction or another.
Sincerely, Global FX chief analyst Sergey Melnikov.