On Thursday, the stock indices of America have not shown an uniform dynamics and closed mixed. The Dow Jones declined by 0.10 (21784.78), S&P 500 fell by 0.02% (2465.10), the Nasdaq grew 0.07% (6397.87). European markets were growing in the uniform dynamics and closed in positive territory. German index DAX has grown on 0.67% (12296.63), British FTSE 100 rose 0.58% (7396.98).
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 Housing loans Australia in July
At 06:00 MSK a Speech the Deputy head of the RBA Debelle
At 08:45 MSK the unemployment rate in Switzerland taking into account seasonal changes for August
At 09:00 MSK trade balance of Germany in July
At 11:30 MSK the Volume of production in manufacturing industry of UK in July
At 11:30 MSK trade balance the UK in July
At 11:30 MSK Speech by RBA Lowe
At 15:00 MSK Estimate of UK GDP growth from NIESR
At 15:30 MSK employment change in Canada in August
At 15:30 MSK the unemployment rate in Canada in August
At 15:45 MSK FOMC member Harker speaks
At 20:00 MSK the Number of drilling rigs from Baker Hughes
The main event of the day was the meeting of the ECB. Key rates was kept unchanged, 0% for loans and -0.4% for deposits. It was expected by majority of the stock market participants. In his speech Mario Draghi said that the decisions about the future of the asset repurchase program from the market can be taken at the next meeting, on 26 October this year. The loyalty to the strengthening of the European currency is clearly visible in the ECB statement, and it gave a confidence to the buyers. During yesterday's trading session and today Euro reached new annual highs, almost touching the 1.21 level against the dollar. Now the target of the pair EUR/USD movement remains at the level 1.3.
Natural cataclysms continue to play the main role in the US market. Hurricanes "Harvey" and "Irma" is having an impact on the market, both negative and positive. During his election campaign, Donald Trump promised to not increase borrowings under no circumstances. But compromises were necessary in view of restoration from the effects of hurricanes. Thus it was managed to extend the government for another three months.
It was difficult for investors to choose a direction, yesterday session started with a weak growth and then the market went down. One of the consequences of the hurricanes was the increase to 298 thousand in the number of Americans who applied for unemployment benefits for a first time, it was the maximum value since November 2012.
In his speech, the President of the fed new York, William Dudley, did not repeat the statement, uttered three weeks ago that he is ready to vote for another rate increase this year. He reinforced a general expectation of the Fed that growth of inflation is not far off, and it is necessary to continue a gradual increase in rates.
The resumption of refinery operations in America helped to recover the demand for crude oil and led to the growth of its quotations. According to the EIA data, the oil inventories rose last week by 4.58 million barrels. Since it is close to the expectations 4,022 million, then the news did not have effect to the quotes. Also supporting oil prices gave the expectation of possible consequences from hurricane "Irma", as well as the weak dollar, which is at the lows of 2015 now.
Sincerely, Global FX chief analyst Sergey Melnikov