Macro economics

Market analysis for October 05, 2017

Stock indices of America yesterday continued ascent in the single dynamics and closed in the green zone. Dow Jones industrial average added 0.09% (22661.64), S&P 500 rose by 0.12% (2537.74), the Nasdaq rose by 0.04% (6534.63). European markets have not shown single dynamics, and closed in different directions. The German DAX gained 0.53% (12970.52), British FTSE 100 dipped 0.01% (7467.58).

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 03:30 MSK retail sales of Australia in August
At 11:30 MSK speech by a member of the ECB Pratt 
At 14:30 MSK publication of the minutes of the meeting of the ECB's monetary policy 
At 15:15 MSK a Speech by ECB member Coeure 
At 17:00 MSK FOMC member Harker speaks
At 16:10 MSK FOMC member Powell speaks
At 16:15 MSK FOMC member Williams speaks
At 19:00 MSK speech of the member of the monetary policy Committee McCafferty 
At 20:30 MSK a Speech by BoE MPC member Haldane speaks 
At 23:30 MSK FOMC member George speaks

Yesterday the countries of the Old World published indices of business activity in the services sector, which in average showed neutral values. Volumes of retail sales in the Eurozone generally disappointed investors, instead of the expected 0.3% rise there was a decline of 0.5%. This is reflected in the decrease of the dynamics of growth of the European indexes. Investors seem decided to ignore what is happening in Catalonia. As it was said by the President of the region Carles Putteman, if no one would notice the fact that Catalonia seceded from Spain, it really will do it. However, even if the referendum was recognized as legitimate by the European Commission, the appearance was less than 50%, in the absence of control over the process itself. Pretty soon all forget, if there will not follow the development of radical sentiment. Euro not demonstrated particular dynamics .

Yesterday, fed chair Janet Yellen said nothing substantial. Judging by previous statements, most likely we are facing yet another increase in the key rate. The inverters already start to lay it to the price. Now everybody waiting from news only how them can influence to increase or decrease the probability of that event. Important sign this week, on Friday, could be the publication of nonfarm payrolls in the USA. Yesterday the same indicator from Automatic Data Processing was published it was better than analysts ' expectations. Also Donald Trump promised to name a new candidate to head the fed within the next 2 weeks, since the resignation of Janet Yellen is expected in February 2018. It is likely this will be the person who supports the President with his current policy. U.S. indexes storm new tops.

According to EIA, the oil inventories of the USA decreased by 6,023 million barrels, it is quite important, on the background that it was forecasted reduction only 756 thousand. It is likely that today oil will close with growth.
 

Sincerely, Global FX chief analyst Sergey Melnikov.

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Interest rates

Country Rate Value
USA Federal Funds 0,25 %
Switzerland 3 Month LIBOR Range -0.75 %
United Kingdom Repo Rate 0,10 %
EU Refinancing Tender 0,00 %
Japan Overnight Call Rate -0,10 %
New Zealand Official Cash Rate 0,25 %
Australia Cash Rate 0,25 %
Canada Overnight Rate Target 0,25 %
All rates
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