During the last trading session of the previous week the stock indices of America have not shown a uniform dynamics, and closed in different directions. The Dow Jones declined by 0.01%(22773.67), S&P 500 dipped 0.11 %(2549.33), the Nasdaq rose 0.07% (6590.18). European markets also traded without a single trend. The German DAX declined 0.09% (12955.94), British FTSE 100 increased by 0.20% (7522.87).
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 09:00 MSK the Volume of industrial production in Germany in August
At 10:45 MSK a Speech by ECB Executive Board member Mersch
At 11:30 MSK the Index of investor confidence Eurozone trade balance for October
At 13:00 MSK the Eurogroup Meeting
At 17:00 MSK the Index of trends in the US labor market for September
At 19:00 MSK Speech of ECB member, Lautenslager
At the end of last week, European investors have preferred to fix profit after rapid growth in the beginning of the month, and this was reflected in the indexes. Besides an alarming factor is still the uncertainty of the Catalonia status, whose independence can be declared already today. In the UK the national currency came under pressure due to extremely poor speech of Prime Minister, Theresa May, about Brexit.
On Friday there was an event in the United States which cannot be ignored. Lasted for seven years the monthly payroll expansion in non-farm payrolls stopped in September. This is one of the most important indicators of the US economy decreased by 40 thousand instead of the projected growth of 83 thousand. At the same time, unemployment fell to the lowest since February 2001 level of 4.2%, which was unforeseen at the forecast of no change from 4.4% in August.
Despite the bright negative news, there were no the panic in the markets. Investors understand that this temporary and happened due to local natural disasters. Market participants believe the resumption of sustainable employment growth in the future. Like European stocks, traders took profits before the weekend after a shock the growth of the entire previous week, during which the index of wide market S&P 500 stormed to new highs, this led to the obvious overbought. It is likely that in the near future will be a technical correction, after which the growth will continue, boosted by the beginning reporting period of U.S. companies, which are waiting for positive results.
Oil quotes did not manage to grow. Pressure to the oil industry came from a natural disaster. In the Gulf of Mexico rages next hurricane "Nate", which threatens not only the oil industry but also to the infrastructure for processing, which is located on the beach. At the beginning of this week, the black gold may have a support due to seasonal factors, as well as from the publication of a monthly report of OPEC and IEA.
Sincerely, Global FX chief analyst Sergey Melnikov.