On Thursday, the stock indices continued to rise to new heights in a single dynamics. The Dow Jones rose by 0.50% (22775.39), S&P 500 added 0.56% (2552.07), the Nasdaq jumped by 0.78% (6585.36). European markets have not shown an uniform dynamics, and closed in different directions. Germany's DAX dipped 0.02% (12968.05), British FTSE 100 rose by 0.54% (7507.99).
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 10:30 MSK the Index of housing prices in the UK from Halifax in September
At 15:00 MSK the speech of the BoE MPC member Haldane speaks
At 15:30 MSK the Change in the number of non-farm payrolls report for September
At 15:30 MSK US unemployment level for September
At 15:30 MSK employment Change Canada September
At 16:15 MSK Speech of Bostika, a member of the FOMC
At 17:00 MSK the Index of business activity (PMI) from the Ivey Canada in September
At 18:45 MSK FOMC member Rosengren speaks
At 19:15 MSK FOMC member Dudley speaks
At 19:45 MSK FOMC member Kaplan speaks
At 20:00 MSK the Number of drilling rigs from Baker Hughes
At 20:00 MSK FOMC member Bullard speaks
There is a fall of tension about integrity in Europe. The decision on the proclamation of the independence of Catalonia has been postponed. Yesterday it was published the minutes of the meeting of the ECB which shows the confidence of the regulator in the dynamics of inflation that it will soon reach the target level. From this it may be concluded that the tightening of monetary policy and the termination of the quantitative easing program will come sooner.
Yesterday in America the most important news was the publication of the final list of candidates to head the fed. The term of Janet Yellen will expire February 3, 2018. The next can be one of three candidates: Kevin Warsh, Jerome Powell and Gary Cohn. The most "hawkish" of them is Kevin Warsh, who frequently criticized the overly loose monetary policy now. If he is selected, it will be possible to expect acceleration in tightening and a few increases in rates over the next year, which could lead to a substantial correction. Another concern of investors is due to the fact that the President will push the person who will be more guided by political interests but not economic indicators.
Yesterday the US dollar was supported by the published number of jobless claims, which declined by 12 thousand, better than expectations of a decline of 7 thousand. Today will be published an important indicator for employment, the evaluate of which will be complicated by the distorting effects of the hurricane, so the focus is likely to be aimed at the growth of average hourly wages.
Sincerely, Global FX chief analyst Sergey Melnikov.