On Tuesday, the stock indices showed a negative trend and closed in the red zone. The Dow Jones fell by 0.24% (21029.47), S&P 500 fell by 0.12% (2412.91), the Nasdaq dipped 0.11 percent (6203.19). European markets also turned negative. The German DAX index dipped by 0.24% (12598.68), British FTSE 100 lost 0.28% (7526.51).
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 04:10 MSK a Speech of the Chairman of the Reserve Bank of New Zealand Wheeler
At 10:20 MSK Speech by ECB member, Coeure speaks
At 10:55 MSK the change in the number of unemployed in Germany in May
At 12:00 MSK the unemployment rate in the Eurozone in April
At 12:00 MSK the consumer price Index (CPI) in the Eurozone in May
At 15:00 MSK FOMC member Kaplan speaks
At 15:30 MSK and the speech of the member of the ECB Lautenslager
At 15:30 MSK the canadian GDP for March
At 16:45 MSK the Index of business activity (PMI) in Chicago in May
At 17:00 MSK pending home sales in the US real estate market for April
At 21:00 MSK Beige book fed
The main driver of the decline in European markets continues to be the speech of Mario Draghi in which he said nothing about the plans of tapering QE. On the contrary, he confirmed the current policy of regulator in order to consolidate inflation at required levels. Against this background, shares of European banks came under attack of bears. Also sales was supported by investors of companies of the energy sector, due to falling of oil prices. Today the investors will assess data on unemployment in the countries of the region, as well as details on monetary policy from ECB speakers.
The decline in the U.S. market had a more symbolic character. After opening with a gap down, the broad market index S&P 500 went up, moving in the range of the two previous sessions. Factor of thin market has had little impact on the stocks. Growth was supported by overall positive macro-economic data. The index of personal spending and personal income showed a synchronous increase of 0.4%. Consumer inflation occurred within expectations. As in Europe, the major outsiders were the representatives of the oil sector. In particular the shares of Devon Energy sank 3.6 %. It is likely that the stock market will continue to consolidate before the monthly data from the labor market which will be published on Friday.
The oil market is already fully played the news of the renewal of the OPEC+ Vienna Treaty of the reduction of production volumes, and now the main factors will be inventories in the US and the activity of shale producers. Because of the national holiday in the first day of the week information on stocks from the EIA will be published a day later and will be known later today. On Thursday, the official statistics from the US Department of energy coming. While oil prices continue to decline.
Sincerely, Global FX chief analyst Sergey Melnikov.