In the last trading session of previous week the stock indices showed a single positive dynamics and closed in green zone. Dow Jones rose by 0.13% (22871.72), S&P 500 added 0.09% (2553.17), the Nasdaq rose 0.22% (6605.80). European markets have not shown uniform dynamics and closed mixed. German DAX climbed 0.07% (12991.87), British FTSE 100 slipped 0.28 % (7535.44).
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 07:30 MSK industrial production of Japan in August
At 12:00 MSK Eurozone's trade balance for August
At 15:30 MSK the PMI manufacturing United States NY Empire State in October
At 15:30 MSK the Volume of foreign investments in the securities of Canada for August
At 17:30 MSK Overview economic environment the Bank of Canada
At 21:00 MSK the Report on execution of the Federal budget of the USA for September
At 21:00 MSK the performance of the member of the ECB Lautenslager
In Europe, the main positive news Friday was centered around Germany that pushed national DAX index upwards. There have been published consumer price index for September, it showed stability and was published in accordance with the forecast of 0.1%. Automaker Volkswagen has reached an increase in sales of 6.6% in September. According to the report, this was due to the high demand for SUVs and better business results in China.
On Friday, the pressure to the dollar was from the macro data. The consumer price index though has grown only 0.5%, it was below the forecast of 0.6%. In September annual inflation in America was at the level of 2.2%, it is also below analysts expected 2.3 %. Retail sales also turned out 0.1% worse than expected. From all the macroeconomic indicators the consumer confidence index of University of Michigan pleased of investors, which reached the level of 101,1 points, it is a maximum since 2004. Despite a sluggish macro statistics all three major indexes reached new historical peaks during the trading session.
Quarterly reporting season is ongoing. Bank of America added 1%, its profit rose for the quarter. Company Wells Fargo, also from the financial sector, lost 3.1% after reporting third-quarter profit weaker than expected.
Today on the opening of the session sharp jump of oil prices was due to possible failure in Congress of the new intent of the President of the United States Donald Trump to conclude an agreement on nuclear deal with Iran, which should be confirmed every 90 days. This may lead to a resumption of sanctions against Iran and to reduce total world offer for up to 1 million barrels of oil per day. Growth also contributes to reducing the number of drilling rigs, according to Baker Hughes, and data from the IEA that countries outside of OPEC has fulfilled its obligations under the transaction on the reduction of oil production by 119%.
Sincerely, Global FX chief analyst Sergey Melnikov.