Yesterday, major US and European indices finished the trading session in the green zone. Dow Jones gained 0.42% (18161.94), S&P 500 rose by 0.62% (2139.60 n.), The Nasdaq rose by 0.85% (5243.84). The German DAX increased by 1.22% (10631.55), Britain's FTSE 100 0.76% (7000.06).
This day is full of publications of macro data that can influence the course of trading.
At 11:30 MSK, in the UK will be published the data on changes of the average level of wages, including premiums in August, it is expected to be 2.3%.
At 11:30 MSK, we will know the change in the number of applications for unemployment benefits in the UK, in September, it is expected to be 3,0K.
At 15:30 MSK, in the US will be disclosed the number of building permits issued in September, analysts predict a rise to the level of 1,165M, the previous value was 1,152M.
At 17:00 MSK, will be published a report on monetary policy from the Bank of Canada.
Also at 17:00 MSK, we will know the decision on Canadian interest rate, It is expected to remain unchanged at 0.50%.
At 17:30 MSK, the US Energy Information Agency (EIA) will publish the changes in crude oil inventories for the week, they are expected to increase by 2,705M.
At 18:15 MSK, scheduled the speech of the head of Bank of Canada.
Yesterday, in the wake of reports of positive publications from the New World's largest companies, stock markets corrected upwards, starting with a new gap at the opening session.
Report by Goldman Sachs Group has surpassed analysts' forecasts for quarterly earnings. It was expected that financial holding will show a profit of $ 3.82 per share, in fact came out $ 4.88. On this news, company's capitalization increased by 1.71%. Quarterly profit increased by more than 0.66 bln. compared with the previous year and amounted to $ 2.09 billion.
Also, because the increase of the profits for the third quarter was better than expected, the insurance company UnitedHealth Group showed strong growth of capitalization. It's shares yesterday gained 7.07%.
The largest increase, based on quarterly reporting, yesterday showed Netflix. In the middle of the day its shares gained 19.42%.
As a result, S&P 500 rose by 0.62%, and continued consolidation in the range of 2120-2145. Today, investors will pay attention to the economic data, and assess its impact on the decision of the Fed's key rate. It is likely that today the stock market will continue to rise.
Oil continues to move in consolidation, reducing the volatility with each passing day, it is a signal of a preparation for a stronger movement, which could take place already this week. In view of the fact that growth factors either already included in the price, or just not expected soon, and reduction factors are accumulated with each passing day, it can be assumed that there will be a downward movement to the target level in the range of 47,0-47,5 dollars. per barrel for Light brand. The trigger for this movement can become a weekly publication of the report on inventories from EIA and API. The first publication will be today at 17:30 MSK.
Sincerely, Global FX analysts team.