Yesterday European markets returned to gains, as pan-European index EUROTOP 100 updated 11 month highs. Amid reports of the Italian banking system support by the government the financial sector in Europe was in demand, as well as IT sectors. US stocks also closed higher, but pulled back from its intraday highs. The main engine of growth in yesterday's session, were better than expected economic data. Weekly jobless claims fell by 4,000 to 254,000 last week, reflecting the extremely low level of layoffs in the United States. The consumer price index rose 0.2% last month, due to an increase in rents and rising gas prices. Production and business activity indexes also surged to the top. Amid significant corporate news, it is worth noting Yahoo decline, which fell by 6.1% on reports of mass data loss.
Earlier today, the majority of Asian stock markets closed negative. Rate hike in the US increased the funding cost for the Asian companies in dollars, which could trigger a capital outflow from the developed Asian economies in search of higher yield curve.
Despite the overall weakness of the equity markets of the Asian region, the Japanese stock market continues to gain. The main momentum comes from significant Japanese yen weakening, that first started after the presidential election in the United States, and then, after the Fed's decision to raise the rate. It supports Japanese exporters; a weak yen makes Japanese exports more competitive. In today's trading in the growth lead Mitsubishi Motors with growth of 3,2%, and Mazda Motor rose 1.8% and Nissan Motor added 1.1%. (Nikkei + 0,66%, S P ASX 200 -0,10%, Shanghai Composite + 0,17%)
Today, European stock indexes fell slightly after yesterday's closing at the highest level since January. Growth stopped on profit taking after and before the upcoming weekend. US indices futures in the green zone.
Brent oil market traded within the boundaries indicated earlier - the support level is at $ 53. Trading activity in the oil market is low; the news background is also empty. If the support level of 53 will be broken down, the decline will continue in the area of $ 51.
In the FOREX market, the US dollar weakened somewhat against some major currencies, amid profit taking by traders. Nevertheless, the gain momentum of the US currency has not been exhausted; the US dollar index is at levels of 102.70 points, the level of 2003.
At the end of the week, the global markets remain in positive sentiment amid positive data and perception of the Fed meeting. Yesterday, US data showed a significant increase in consumer prices, and the data in Europe showed a strong country PMIs. Oil prices remain above the psychologically important level of $ 53. However, there is some local overheating of the stock markets and the US currency. Today we expect a weak local technical correction in the markets. Next week we expect the positive trend to continue. Today, the focus of the players will be on the US housing market.