Weekly reviews

ECB positive expectations in market focus

Yesterday, European markets continued to gain, Old World financial markets strengthened for the third day amid positive expectations of ECB meeting and strong oil market. The pan-European index Euro Sroxx 50 updated 2016 highs. Financial and banking sector were leading the gwowth.

The American Stock Exchange updated historical highs in the SP 500 and DOW indices , local weakness of the US currency supported risk appetite as well.

Today, European stock indexes traded mixed, trading activity remains below average- ECB meeting and press conference of Draghi in the spotlight. As expected, the ECB would decide to extend bonds buying program worth 80 billion Euro per month for the period after March 2017. In addition investors expect the central bank's decision on interest rates, which according to most analysts, will remain unchanged. The ECB announces the rate decision at 12:45 pm London time. ECB President Mario Draghi will hold a press conference at 1:30 pm London time.

Some positive on the market came from the data on China, which showed growth of imports by 6.7% and exports by 0.1% in annual terms.

Oil prices have stabilized in anticipation of OPEC meeting, which also adds volatility to the markets. Today quotes Brent oil remains in the range of $ 53- $ 55 on the $ 53.75 level.

The number of people employed in the non-agricultural sector in France rose by 0.3% in the third quarter, compared to the previous quarter, in line with expectations of analysts. Futures for US indices traded in the green zone.

Earlier in Asia, the region's stock markets closed positive amid yesterday's strong Wall-street close, the overall positive sentiment on the upcoming ECB meeting and stronger regional data supported the market. Japan's GDP grew by 0.3% in the third quarter, compared to the previous quarter, with growth forecast at 0.6%. (Nikkei Stock Average + 1,45%, SP ASX 200 + 1,20%, Shanghai Composite -0,21%) Despite the overall positive on the stock markets, the Chinese market came under pressure after recent tensions in relations between the United States and China during a telephone conversation with the leaders of Taiwan and Trump. China's leadership has expressed the opposition to such contacts.

On the FOREX currency market trading day began with a weakening of the US currency, before the main event of the week as players are reducing their positions in dollar-denominated assets. The European currency continues to recover. EUR / USD back to 1.0790 area. The pair USD / JPY faced a strong resistance 114.50 and consolidate below this level.

Global markets showed significant growth during the first half of the week. Strong statistics data and the expected positive from the ECB formed the appetite for risk in the developed markets. However, Eurozone GDP growth may have an influence on the expansion of the program to stimulate the European economy. We expect significant growth in volatility in the second half of the day.