Today the most important market event is market stability (at least in European trading) after the volatility, sale-off and risk-off at last week. Friday's recovery of US markets from local lows and closing at session highs allowed the markets to leave for the weekend in a good mood and formed a positive sentiment in Asia and Europe with the start of the new week. US market volatility VIX index fell to 25 points, it is still high levels, but compared to Friday (February 9) when VIX was at 40 points, this is a clear sign of volatility decrease.
Today, Japanese stock market was closed, and Pan-Asian index MSCI Asia, with the exception of Japan, completed a seven-day negative series and gained almost 0.6%. The markets of China went to the rally with the growth of CSI 300 by 1.3%. Euro Stoxx 50 in Europe grew by more than 1.75% to the opening of the US market. Materials and information technologies are the strongest sectors. The opening of the American market occurred in the green by more than one percent for all indices.
On Forex USD dollar demonstrates a softer position in relation to most of the major currencies. Today, after the weekend, there are not clear drivers in the market and, in a sense, the currency markets are kind disoriented. In the early European trading, euro took a test of 1.2300 level, but the real assault on the round level did not begin. After the pullback to zone 1.2243, bulls became more active and somewhat strengthened their positions. At the opening of US trading session, EUR / USD is trading at the level of 1.2256. It is not excluded that in the coming days we will see an assault and fixstion above 1.23, maybe even today. British pound stayed above $ 1.3800, but buyers in early Europe rolled it back to the $ 1.3875 area. Australian and Canadian currencies are traded steadily.
Today, the news background is light in the markets. The main event for the US market will be the official opening of the infrastructure initiative of President Trump's administration. If the declared volume of the infrastructure support program coincides with market expectations, this will be another positive signal for the US stock markets. The dollar will also receive its share of support.
On Friday, oil continued negative dynamics - Baker Hughes reported that in a week the number of oil drilling rigs in the country increased by 26 units. The total number of drilling rigs in the US was 791 units, which is the maximum number since April 2015. This reinforces concerns about further strong growth in the volume of shale oil production in the US, even amid the strong decline in price that we have seen in recent weeks. The market weekly decline in oil prices was the strongest since 2015.
According to the EIA, the United States has already pushed Saudi Arabia from the second place in terms of oil production and, given the current production rate, Russia is also expected to lose its first place by the end of the year.
Brent approached an important area of support, which is now the key for the price. In case of inability of bulls to keep the price above the level of $ 60 per barrel, the price will leave the current price range of 60.00-70.00 and go into a new range, 50.00-60.00, which will open new