Market Review June 22, 17

Market Review June 22, 17

22 June 2017, 09:54
Andrey Egorov
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On Wednesday, the stock indices of America have not shown a single dynamics, and closed mixed. Dow Jones down 0.27% (21410.03), S&P 500 declined by 0.06% (2435.61), the Nasdaq rose 0.74% (6233.95). European markets were moving in single direction down and closed in the red zone. Germany's DAX fell 0.32% (12774.26), British FTSE 100 slid by 0.33% (7447.79).

Tonight in the Asian session the New Zealand dollar rose after the Central Bank kept interest rates unchanged at a record low level. The increase of 0.4%, bringing NZD/USD returned to the resistance at area of four-month high the 0.7275, where it continues to trade for the second week. If resistance at level 0.73 will be broken it may give the green light to the long up trend.

The British pound rose against the dollar by 0.4%, reaching the level of 1.27 during session, thereby recouping part of the losses after falling on Tuesday. This movement occurred after the representative of the Bank of England's Andrew Haldane has stated that he is against of some stimulation measures provided as result of the voting to withdraw Britain from the EU this year. Haldane was among the five members of the Bank of England, which voted to keep policy unchanged at the June meeting of the Central Bank. Changing his position puts him at odds with the Chairman of the Bank of England Mark Carney, who opposed the rate hike in a speech Tuesday, after which the pound lost 0.8%.

The US stock market showed mixed dynamics on the background of high volatility in the commodities prices. The market is receiving a support from recovery of a high-tech sector, the Nasdaq continues its upward moving after recent losses. There are encouraging statistics from the real estate market were yesterday. Home sales in the secondary market grow above expectations of analysts. Despite the locally positive news among financiers it is intensifying concern that a hawkish fed policy now is a mistake and can create obstacles for economic growth. The reason for this is the slowdown of inflation. Against this background, the greenback continues to weaken during Asian session. Today, market participants will evaluate data from the labor market also it is an important role plays speech of FOMC member Powell, which as expected can give hints at the plans of the Federal reserve.

The fall in oil prices is at the focus of attention. It continues for the fifth week in a row and is the longest continuous decline over the past two years. From a peak price of that year, the total loss amounted to more than 20%. A decrease in inventory gsve a weak support to buyers. Data came out slightly better than expected and it was almost completely placed to the price. The Minister of oil of Iran Bijan Zanganeh said that OPEC members can take additional measures to reduce supply. Now there is a possibility that the level of 42.5 for WTI can be a strong support, and the falling speed will decrease, going in the consolidation.

Andrey Egorov

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