Weekly reviews

FOREX moving towards consolidation, US home sales in the focus today

On Tuesday, the global markets kept on gaining. The stable oil as well as news on Italian government intention to support the country's banking sector and to capitalize banks if needed brought positive market sentiment in Europe. Investors viewed Germany statistic data on manufacturing pries (PPI for the month + 0.3%) as a sight of growing demand in production sectors. This type of data is always positively perceived by markets. (FTSE + 0,38%, DAX + 0,33%, CAC + 0.56%)

US stocks continue to trade close the historic maximums. The high-tech NASDAQ updated historical highs. Sales volumes in the largest US retailers over the past 2 weeks expectedly increased by 1.5%. Electoral College finally confirmed the precedency of D. Trump. (DOW + 0,46%, SP + 0,35%, NASDAQ + 0,49%)

Today, European markets are gradually moving into the red amid new bank concerns. This time European Court reversed the Spanish court decision, limiting local banks obligation on defaulted mortgage contracts. High Court Decision of the European Union means that Spanish banks need to return the billions of euros back to customers. In addition, the US Department of Justice has demanded Credit Suisse Bank of payment of $ 7 billion to settle the claim of low-quality mortgage-backed securities. Credit Suisse is reported to deny the claim. This story is yet to develop.

Yesterday, the oil market continued to trade quite volatile. However, Brent failed to settle above the first local resistance at $ 55.80- $ 56. Crude inventories data from API showed a reduction in US crude oil stocks of 4.2 mln. Barrels. Today, the official data from the US Department of Energy to be published. The figures may be similar and bulls will take another attempt to test the level of $ 56. We maintain our prospects for the oil market until the end of the week, the oil market will move towards consolidation on current levels of $ 53- $ 56.

In FOREX trading activity continues to decline. Today, the US dollar halted its gain- currencies consolidate on current levels. We believe that the active phase of this week trading has passed. Most likely, we will see a further shift to the connotations on the stated levels. Nevertheless, tomorrow US GDP data if prove to be strong will allow the dollar index to update yearly highs.

Yesterday, as expected US markets closed in the green. DOW moved to the vicinity of the "round" psychological level 20000 points. Before upcoming Christmas Brent crude oil is trying to gain a foothold close to $ 56. All this creates a positive sentiment and today US indices are likely to continue the growth momentum. Negative tendency in Europe seems to be limited, European investors are not likely to spoil the mood before the holidays. Today, the focus is on US home sales data. Tomorrow the market will be analyzing important data on GDP in the United States for the third quarter.