Stock indices showed a single rising trend and closed in positive territory. The Dow Jones rose by 0.18% (21987.56), S&P 500 added 0.20% (2476.55), Nasdaq grew by 0.10% (6435.33). European stock markets also grew in a joined dynamics. The German DAX index increased by 0.72%(12142.64), British FTSE 100 added 0.11% (7438.50).
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 04:30 MSK gross profits of companies Australia in the second quarter
At 11:30 MSK the Index of business activity in the U.K. construction sector for August
After a six-month growth of 12%, Euro has reached local levels of resistance. Significant correction was on Friday amid investors ' expectations of the results of the European Central Bank meeting this week. It is likely that the regulator this time will announce real steps of the monetary policy changes.
On Friday published important statistics on the labor market in August. The number of jobs increased by 156 thousand, which is significantly less than the predicted value of 170 thousand. Unemployment has increased to 4.4%. Despite these disappointing results of key statistics, the dollar strengthened against the Euro. Also in the previous trading session, the indexes showed an increase, which was limited by profit-taking before the long weekend. The S&P 500 index reached the level of local resistance 2475 and went into the consolidation, the increase for the week was 1.4%. There is a day off today in a New World due to the celebration of Labor Day, the stock markets of the US and Canada are closed.
It is likely that tomorrow the index will open with a strong gap down on the aggravation of the geopolitical situation. North Korea stated that over the weekend it was tested hydrogen bomb, and this has led to a sharp deterioration of relations with the main opponents, Japan and the United States. At the Asian session of Forex the dollar fell in price and probably the trend will continue after development of the negative events, which can be response from the United States.
In this situation, the winners are investors in the precious metals. Gold continued rise on Friday after the release of negative data from the US labor market. Last week the growth was 2.5%. Today in the Asian session, quotes of precious metal showed the opening with a gap up.
The oil inventories of U.S have been declining already during 9th consecutive week. That meets assumptions about influence of the Vienna agreement of OPEC+. Also, due to the effects of hurricane Harvey US Department of energy used a 1 million barrel from inventory to avoid supply of gasoline. Oil rose up during the previous two sessions in a row, but was unable to correct the drawdown in full. The reason of this was the strengthening of the dollar. During the week the price of "black gold" fell by 1.2%. Now the OPEC report supports prices, in August it showed a decrease in production by the parties to the Vienna agreement for 300 thousand barrels, and evaluation of implementation was 96%.
Sincerely, Global FX chief analyst Sergey Melnikov