At the last day of the previous week the major stock indexes of the USA showed growth in single dynamics and closed in the green zone. The Dow Jones rose by 0.69% (20804.84), S&P 500 gained 0.68% (2381.73), Nasdaq-0.47% (6083.70). European markets also grew up in a single dynamics. The German DAX up 0.39% (12638.69), British FTSE 100 gained 0.46% (7470.71).
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 02:50 MSK trade balance of Japan
At 13:00 MSK the Eurogroup Meeting
At 17:00 MSK FOMC member Harker speaks
At 17:30 MSK FOMC member the Kashkari speaks
At 20:30 MSK a Speech the Deputy head of the RBA Debelle
This week is also expected the publication of the Fed minutes and of the European Central Bank, the most interesting event will be the OPEC meeting on May 25.
There was a little of significant macroeconomic statistics on the American markets on Friday. Most of investors' attention was focused on a speech by members of the FOMC. The head of the Federal Reserve Bank of St. Louis James Bullard expressed doubt of the need to tighten monetary policy and raise rates at the next meeting in June as the economy slowed the growth in the first half of the year.
Although passions around the U.S. President came aside, the scandal still continues. The flow of accusations to the direction of the White House from congressmen and major media still pours. This prevents the markets to recover, although there was explicit corrective growth, it was unable to fully recover the drop of the middle of the week. During the trading session on Friday the index of wide market S&P 500 rose to the level of 2390, but it is still below the broken line of the rising presidential trend that goes from November last year. It is likely that increased market volatility will continue in the near future, and the movement will be held in a sideways range between 2350 and 2390.
On Friday, the President of the United States Donald Trump as part of a tour to the Middle East and Europe visited Saudi Arabia. This is the first official foreign visit of the new President. One of the achievements of this trip was a big contract for the supply of arms to Saudi Arabia.
Last week, due to the raised wave of political uncertainty the gain was in low riskier assets. During the previous week gold has gained in price of 2.1%. The growth could be more in connection with a reduction in the value of the dollar. Probably this week we can expect continue of rising local trend.
The weakening dollar also supported oil quotations. In addition to this price of black gold stretching up due to the expectations of extending the OPEC agreement to reduce the oil production. It is likely that the Vienna agreement will be extended until March of next year. During the last week oil has increased for 5.2%. This week main event will be a meeting of the cartel, where will be accepted key decisions on further joint action directed to increase oil prices.
Sincerely, Global FX chief analyst Sergey Melnikov.