Fundamental analytics

Equity and currency markets consolidate, US inflation data eyed

On Monday, European stock markets were able to maintain a positive mood and displayed moderate growth. In general, market remained positive sentiment in the face of slight reduction in the risks of protectionist measures, and strong economic performance. Yesterday, the German market added strength to Europe, as DAX gained by almost a percent. On the contrary, the US markets could not form a single dynamic, traders fixed profits in some market sectors particular in the commodities.

Today, global markets are seeing neutral dynamics; the markets are under pressure of contradictory factors. Amid positive economic expectations in Europe and the US, negative expectations continue to affect the markets as well. This is primarily due to the introduction of import duties. Positive geopolitical news (the willingness of the US administration to negotiate with the DPRK) can be offset by the deterioration in relations between Britain and Russia, which are not in the best shape. Today and tomorrow, the focus will be on US data on inflation indicators. In addition, markets will analyze the retail sales data, industrial production and sales of new buildings.

In general, the situation in global markets is relatively calm. Today in Germany and the EU we will see indices of economic sentiment from ZEW, which could have an impact on the European stock market and the European currency. However, the main news block of statistics on Tuesday is inflation data in the US. European statistic will probably have a restrained and short-term impact on the market.

Unexpectedly, today non-economic nature news have become known and at the first glance the news not positive for the pound. British Prime Minister indicated a tight deadline until the end of Tuesday urging Russia to provide explanations about allegedly the nerve gas kill in Britain by russians. However, so far equity and currency markets react to this ultimatum quite calmly.

On FOREX, the sterling was trading higher yesterday on the kind of recovery after falling below $ 1.38 immediately after the release of data on employment in the US. The nearest resistance zone is in the region of $ 1.3915. Today, the pair shows a modest decline, losing the gains of yesterday's session. In the middle of European trading, the pair is trading at 1.3881.

For a day, the situation on EUR / USD market remained almost unchanged. The pair continues to consolidate in a narrow range, which is the balance level of the wide sideway channel 1.2180-1.2515. In this situation, market development can occur in any direction.

The Brent oil market is traded around the round mark of $ 65 per barrel. Yesterday's  US forecast on oil production levels turned out to be negative factors for the market - a record production growth is expected in April 2018. This week market will analyze statistics on US crude oil inventories, then on March 14 will be released a OPEC monthly report, and finally March 15 - IEA report.


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