On Tuesday, the stock indices showed a single positive trend and closed in the green zone. The Dow Jones rose by 0.18% (22370.80), S&P 500 added (2506.65), Nasdaq rose 0.10% (6461.32). European markets also showed growth of single dynamics. The German DAX index slightly gained 0.02% (12561.79), the British benchmark FTSE 100 was up for 0.30% (7275.25).
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 01:45 MSK the Balance of account of current operations of New Zealand
At 02:50 MSK trade balance of Japan in August
At 09:00 MSK the Index of producer prices in Germany in August
At 11:30 MSK retail sales in the UK in August
At 17:00 MSK Sales in the secondary housing market in America in August
At 17:30 MSK the Data on excess Inventories of oil in Cushing (Oklahoma)
At 17:30 MSK crude oil Inventories USA
At 21:00 MSK interest rate Decision of the fed
At 21:30 MSK ECB Press conference
Judging from the macro statistic data of yesterday, growth of the economy of Europe continued. Yesterday there was important the publication of ZEW economic sentiment index of Germany for September. This indicator has shown a significant increase for 7 points up to level of 17, though analysts had forecast a rise of only up to 12.5. Also, the French Ministry of Finance has increased the forecast of economic growth by the end of this year. It is expected the GDP growth for 1.7%, which is 0.1% higher than the previous value. But this news has not a significant impact to the markets. European indexes showed a weak growth, while remaining within the current consolidation ranges.
The main event of this week is America's FOMC meeting started yesterday. There will be discussed future steps of the development of monetary policy. The results of the meeting will have a great impact to the all world markets. Most of the market participants have a strong confidence that the fed will keep the key rate unchanged, but there will be made the decision to start reducing of assets on the balance sheet. In anticipation of this event, the indexes came into consolidation at current levels. Reaching a historic high of Monday, the index of wide market S&P 500 reduced volatility, remaining in the range of the previous day. Among the macro statistics, it is better to pay attention to the deficit on the current account operations of the United States, which in the second quarter of 2017 increased by 8.5% up to $123,1 billion, and it is the highest level since the end of 2008.
The aggravation of the geopolitical situation is gaining new momentum. In the speech at the UN General Assembly Donald Trump announced the intention to "completely destroy" North Korea. He also thanked Russia and China for their support of additional sanctions against this country.
According to the API released tonight, oil inventories increased by 1,443 million barrels. This gave rise in sales and which has started in the Asian session this morning. OPEC is continuing the verbal interventions. The representative of Iraq said about the need to cut production additionally by 1% in the basis of the Vienna agreement of OPEC+. Today the investors will assess data of crude oil inventories from API.
Sincerely, Global FX chief analyst Sergey Melnikov.