Stock indices of the United States showed growth on Tuesday in the single dynamics and closed in the green zone. Dow Jones up 0.21% (20937.91), S&P 500 was up 0.18% (2398.42), Nasdaq-0.08% (6138.71). European stocks have not shown uniform dynamics and closed mixed. The German DAX rose 0.31% (12659.15), British FTSE 100 down 0.15% (7485.29).
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 00:00 MSK FOMC member Harker speaks
At 03:00 MSK the President of the Bank of Japan Governor Haruhiko Kuroda
At 01:45 MSK trade balance of New Zealand for April
At 11:30 MSK speech by a member of the ECB Prata
At 15:45 MSK the ECB President Draghi speaks
At 17:00 MSK Sales in the secondary housing market for April
At 17:00 MSK interest rate Decision Canada
At 17:30 MSK crude oil Inventories of USA
At 19:00 MSK the Total number of unemployed in France
At 21:00 MSK the publication of the FOMC protocols
Terrorist attack in Manchester had a weak influence for the decisions of the European investors. Trading session at the stock exchanges of the Old World passed without volatility spikes yesterday. German GDP was a support for indices, data coincided with the forecast. Also, the index of business activity in industry of the country exceeded expectations, as the same indicator for the Eurozone, which was 57 points in May. Today investors' attention will focus on the speeches of the representatives of the European regulator.
Among corporate news, the attention of investors attracted to the conflict resolution between Nokia Corp. and Apple Inc. The subject of the dispute was rights for intellectual property. As a result, companies have even agreed to cooperate in some areas, and the capitalization of Nokia increased by 6.4%.
Yesterday the growth on the American market continued, the indices came close to historic highs again. Falling of last week, when arose the threat of impeachment of the President and outbreak of political uncertainty, has been fully covered during four of the trading session. The market was supported by the administration's proposal on the budget of the country, as well as the successful first foreign tour of the President of the United States. Macro statistics were not encouraging. New home sales and the index of business activity in industry were lower than expected. Judging by the nature of market behavior is now possible to fear a sharp decline. In this case, the trigger can be and raising the fed rate as well as the volatility of the political situation. Today the investors will pay attention to the release of the minutes of the last meeting of the FOMC.
Oil continues to rise, as factors for growth are more than for reduction. Investors are awaiting renewal of the Treaty of Vienna. The hopes for this event are strong in spite of the statement of the Kuwait Minister of oil Asama al-Marzouq statement that not all members of the Covenant OPEC+ want to extend agreement for another nine months. Today is also supported by data from API about inventories in the United States, although the amount of 1,500 million barrels was lower than expected 2.700. Today market participants await the publication of data on inventories from the Energy Information Administration.
Sincerely, Global FX chief analyst Sergey Melnikov.