On Thursday stock markets of America have not shown unified dynamics and closed mixed after the moving with low volatility. The Dow Jones declined by 0.03% (20951.47), S&P 500 added 0.06% (2389.52), the Nasdaq grew 0.05% (6075.34). European markets showed a confident growth in a unified dynamics. The German DAX rose 0.96% (12647.78), British FTSE 100 added 0.19% (7248.10).
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 04:30 MSK a Report on monetary policy RBA
At 06:00 MSK Expected inflation in New Zealand for the first quarter
At 15:30 MSK the unemployment rate of Canada in April
At 15:30 MSK the Change in the of non-farm payrolls for April
At 15:30 MSK the unemployment rate for April
At 15:30 MSK employment Change Canada April
At 17:00 MSK the Index of business activity (PMI) Ivey Canada for April
At 18:30 MSK FOMC member Fisher speaks
At 19:45 MSK FOMC member Williams speaks
At 20:00 MSK the Number of drilling rigs from Baker Hughes
At 20:30 MSK FOMC member Rosengren speaks
At 20:30 MSK the Speech of fed Chairman Yellen
Europe prepares for the second round of the presidential elections in France this weekend. A recent television debate Emanuel Macron beats competitor Marine Le Pen with a score of 63% against 34%. The European currency responded with pulsed growth. Pair EUR/USD jumped up to 1.0930 and the trend continues, it is likely that today we will see the 1.10 zone. Remind that after the victory of the Macron in the first round of the Euro opened the week with a strong gap up. The market is now acting like he already won, putting the event in the price. Investors do not afraid to take risks, the French CAC 40 closed with a rise of 1.35% yesterday, exceeding a maximum of two years. Today the heat might be slightly eased, and investors will reduce positions before the decisive weekend.
Yesterday macroeconomic indicators pleased investors of US again. The number of initial claims for unemployment benefits fell last week to 238 from 257 thousand, which was better than expected level of 247. However, the index of wide market S&P 500 shows no signs of growth, and it is trading in the range indicated at the beginning of last week, between levels 2380-2400. It is likely that market participants await the release of the monthly employment report non-farm payrolls, which will be held today 15:30 MSK. It is hoped the output data better than expected, judging by all the previous reports from the labor market this week.
Quarterly reporting season is ongoing in America. Capitalization of Facebook is decreasing by 0.89%, despite exceeding forecasts report. Also decreased the company's stock of Tesla for 4.69% after the publication of data about losses. The leader of the outsiders was the company Avon Products, whose market capitalization fell by 16.29% due to much worse statements.
Oil prices accelerated their decline as the result of rising expectations of canceling prolongation of OPEC+ Viennese Treaty about the reduction of supply volumes for the second half of this year. Also the decline in US inventories this week is not contributed to the growth. Today, investors will be able to judge about the activity of the shale oil producers using the report on the number of drilling rigs from Baker Hughes.
Sincerely, Global FX chief analyst Sergey Melnikov.