On Thursday, the stock indices of America have not shown uniform dynamics, and closed in different directions. The Dow Jones rose by 0.20% (22203.48), S&P 500 dipped 0.11%(2495.62), the Nasdaq slid 0.48% (6429.08). European markets were traded with a single negative dynamics and closed in the red zone. The German DAX dropped 0.10% (12540.45), the British FTSE 100 fell 1.14% (7295.39).
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 01:30 MSK the Index of business activity in industrial sector PMI of New Zealand in August
At 11:15 MSK the speech of the member of the ECB Lautenslager
At 12:00 MSK on the level of wages in the Eurozone in the second quarter
At 12:00 MSK Eurozone's trade balance for July
At 13:00 MSK the Eurogroup Meeting
At 15:30 MSK Base index US retail sales for August
At 15:30 MSK retail sales in the US in August
At 16:15 MSK industrial production, U.S. government
At 17:00 MSK the Index of consumer sentiment from the University of Michigan for September
At 20:00 MSK the Number of drilling rigs from Baker Hughes
In the middle of this week the main factor of pressure was from geopolitics. In response to new sanctions from the UN, the DPRK threatened to "drown Japan and beat US like a mad dog". Against this background, most major indexes turned negative, but among them it was highlighted the growth of the KOSPI, the benchmark South Korea. The President of this country made a statement that is not prepared to support the deployment of nuclear weapons. Thus, South Korea stands against the arms race for resolution of this conflict. This step talks about a possible effort to bring peace to this land.
Macro statistic in Europe has not brought surprises. The growth of the consumer price index in France was 0.5% in August, the same indicator for Italy showed a growth of 0.3%. Both indicators came in line with expectations, which contributed to lower inflation in the markets of European countries. In the background of them stood out England, the national index of which continued to decline for the third consecutive session. Yesterday the Central Bank has left its key rate unchanged at 0.25%, as well as parameters of asset buyback program. Despite this, from the minutes of the meeting of the regulator it is clear that the majority of the members of the Committee on monetary policy are for curtailing stimulus measures in the coming months, as is clearly seen the recovery in the manufacturing sector.
For the American markets yesterday was neutral. Geopolitical negativity was compensated by good news from the labor market. The number of initial claims for unemployment benefits showed a decrease from 298 thousand to 284 thousand, which is significantly better than the forecasted 300 thousand. Basic consumer price index for August came within the expectations.
Buyers of oil are considering the IEA forecast about the increase of energy demand for the next year. At the moment the price of oil reached highs for the quarter. Also the driver of growth is the report about increasing of the OPEC+ Vienna Agreement effectiveness, thanks to which it would be possible to achieve a balance of supply and demand in 2018.
Sincerely, Global FX chief analyst Sergey Melnikov.