Yesterday European financial markets contined to gain, almost recovering from losses of the previous week. The upcoming ECB meeting and anounced plans of the Italian government to buy out the "bad" Monte dei Paschi debt- created a positive market sentiment. Strong European GDP data supportrd the markets as well. (FTSE + 0,49%, CAC + 1,26% DAX + 0,85%) American indexes returned to historic highs. Productivity data showed an increase of 3.1%. (Dow + 0,18%, SP + 0,34% Nasdaq + 0,45%)
Today, European markets remain positive. Investors expect the European Central Bank meeting, which will be held on Thursday, and will helpfully shed light on prospects for european economy. Investors expect the ECB to support the Italian banking sector , which is under considerable pressure, after the failure of the constitutional referendum. US indices futures in the green zone as well.
Asian stocks rose on Wednesday, amid falling regional currencies and gained metals prices. The Australian stock market strengthened, ignoring the weak economic data that showed GDP -0.5% in the third quarter, compared to the previous quarter. At the time, analysts had forecast GDP growth of 0.3% in Australia. (Nikkei Stock Average + 0,74%,. S P ASX 200 + 0,91%, Shanghai Composite + 0,71%)
Yesterday Brent crude moved to a technical pullback from important $ 55 level that was expected. Speculative "overheating" peaked and was leveled by market. API data showed a decrease in inventories by 2.2 million. barrels, but it was ignored by the market as well. Today, the focus is on official statistics from US Energy Department . $ 53- $ 55 range is still valid until the end of the week.
In general, the inert growth of leading stock markets continued on Tuesday. US indexes have returned to historical highs. US dollar looks strong- dollar index holds above 100 points. Yesterday, the oil has lost and in this sense from a technical point of view oil market prospects lool good. Today in terms of statistics the players' attention will be concentrated around oil inventories data and US large block of statistics. We expect that trading volatility will rise in the second part of the week.