Market Review

Market Review

14 июня 2017, 08:59
Andrey Egorov

Yesterday stock indices showed a single strong growth dynamics in and closed positively. The Dow Jones added 0.44% (21328.47), S&P 500 rose 0.45% (2440.35), the Nasdaq jumped 0.73% (6220.37). European markets have not shown uniform dynamics, and closed in different directions. Germany's DAX up 0.59% (12764.98), British FTSE 100 slipped 0.15% (7500.44).

According to the Bureau Office for National Statistics, inflation in the UK was 2.9% in annual terms in May, it is above analysts ' forecasts of 2.7%. Today it is expected publication of the state of the labor market of the country. The British pound managed to adjust up the sale which was in Tuesday, but for the move above it does not have enough prerequisites. Investors are beginning to fear that Theresa May could leave the position of Prime Minister. Political factors now play a more important role than economic and it is possible that the reaction to tomorrow's Bank of England meeting will be insignificant.

Stock indices yesterday actively corrected up after falling during the previous two sessions. The index of wide market S&P 500 has almost achieved the maximum, it stopped at less than 10 points from the target level of 2450. If you take apart the company's high-tech sector of the S&P 500 index, we can see that the recent drop on Friday in addition to fundamental factors also had technical. The decline began immediately after reaching the maximum level, which was seventeen years ago. Now the leaders of growth continue to be the banks. Wells Fargo adds 0,79%, the capitalization of JPMorgan rose by 0.55%. It was a reaction to the statement of the Ministry of Finance on the reduction of regulation for the largest banks.

Yesterday began the meeting of the Fed, it will last until tonight, when results will be announced. Investors are expecting to hear about the plans of the fed to the narrowing of the balance and on further steps in tightening monetary policy. Investors now have no doubt that tonight will be announced the new value of the key rate. Now it is important to understand the kind of rhetoric that will accompany to the change. It will have an impact to the market.

Publication of the OPEC report on Tuesday did not bring the desired good news. In May the cartel increased oil production by 336,1 thousand barrels a day. Also it was saved the forecast of oil demand of the whole world at the level of 96,38 million barrels per day. As a result of the day the price has closed in the red. Also late yesterday, the American petroleum Institute (API) reported an increase of US inventories of hydrocarbons for 2,750 M, while analysts had expected a decline of approximately the same value 2,700 M. Early today in the Asian session the price of oil futures continued to fall, but strong volatility has not followed. Likely, investors are waiting for today's publication of official data. Today, an additional pressure may be the result of the Fed meeting and the increase of the key rate.

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