Yesterday, most US and Europe stock indexes closed in red. Only the Dow Jones index showed an increase by 0.17% (18199.33), S & P 500 lowered by 0.17% (2139.43), The Nasdaq lost 0.63% (5250.27), The Frankfurt DAX index lost 0.44% (10709.68), The British FTSE 100 declined by 0.85% (6958.09).
Today we expect a lot of publications of macro statistics from United States and the UK.
At 11:30 MSK, in the UK will be disclosed the data on GDP for the third quarter, it is expected to grow by 0.3%.
At 15:30 MSK, in the United States will be known the data on basic orders for durable goods in September, it is expected to change by 0.2%.
At 15:30 MSK, in the US will be published the number of initial applications for unemployment benefits. It is expected to decrease, compared with the previous value, by 5K to 255K level.
At 17:00 MSK, in the US will be published the value of index of pending sales in the real estate market in the September, analysts forecast growth by 1.2%.
Today, US Stock indices have come under severe pressure from various factors. Oil prices continue to decline for the third trading session in a row, which has a negative impact on the oil companies. Oil and gas giants Shell and BP have declined and closed in red. Also in the US continues the corporate reporting season, which this time does not please the investors, and does not inspire optimism for the future.
Apple fell by 2.6%, after the publication of quarterly report, which almost met the profit forecast and investors' expectations, while revenue was lower. At the same time, shareholders were disappointed with the forecasts for the last quarter of this year.
Net profit of Nasdaq declined by 7 million. USD or 3 cents per share. One of the largest operators of hotels networks Hilton showed a decline in quarterly profit by 92 million USD to 187 million. Coca-Cola Company also reduced profits and revenue and predicts a further decline in this quarter. Lloyds Banking Holding showed a decrease in net profit by 68%. Yesterday's champion to reduce the value of assets, after the quarterly reporting, was the Southwest Airlines, which plunged by 10.8%.
S&P 500 is now in the fourth acceleration of nascent downward trend, and none of the accelerations has been broken yet. This suggests that the index had not yet reached the flat stage and may still go down. After breaking through the level of 2120 could be the purpose in 2085.
Yesterday's statistics on oil reserves in the United States, despite its positive nature, could not brake the "bearish" sentiment on the hydrocarbon market. Energy Information Agency (EIA) reported a decrease in inventories of crude oil and petroleum products by 0.553 million Barrels, which strongly diverged with the forecasts of a decline by 1.699 million. Trading session for the current futures contracts on Light brand closed with a reduction to the level of 49.23$ per barrel. However, you may notice that the major players are in no hurry to close long positions, this can be seen in the next contract, which is traded higher than current. It is likely that today we will see either upwards correction, or at least the fixation of quotations of oil at current levels.
Sincerely, Global FX analysts team.