Weekly reviews

Yesterday, US markets have updated historical highs

On Thursday, global markets have displayed positive trend. Markets were supported by earnings data of European companies, as well as gaining oil. US markets have shown strong opening, and by the end of the day updated historical highs. The main news event of the day turned out to be D. Trump’s statement about the change in tax in the United States and following demand for shares of the financial sector. SP 500 overcame the psychologically important level of 2300 points.

Published data showed that initial claims for unemployment benefits fell by -12,000 to a seasonally adjusted 234,000 for the week ended February 4th. The consensus forecast assumed growth of 250,000 claims. Growth in the labor market increases competition among employers, which ultimately can stimulate more rapid wage growth.

Today, February 10, most European indexes traded mixed amid various range of factors - positive statistics, rising oil prices and a possible profit-taking after yesterday's growth. European markets reacted optimistically to data on foreign trade of China. The mining sector, and metals markets considerably gained after China reported export growth of 7.9% in January, compared with a fall of -6.1% in December. China is a major consumer of natural resources and any hint of strong economic growth in the country can stimulate growth in the mining sectors around the globe. Futures on the US markets are trading in the green today.

The oil market continues to gain in the medium-term channel $ 54.50- $ 57. Brent has found demand in the region of $ 54.55- $ 55, after which the market moved to rise to the upper level of channel $ 56.50- $ 57. In the news front, the oil market found support in Goldman Sachs analysts - the bank expects the oil shortage in the 1st half of this year. Data on oil imports in China also supported the oil market. Today, the IEA report is to be released, and OPEC report on Monday. The volatility in the oil market can get higher.

Yesterday, the markets were able to ignore political risks and focus on the economic data. Strong and positive statements of the European corporations and oil brought markets in the green zone. However, this is a local intra-day gain, global news background is still very discreet and does not suggest medium-term longs. Details on US president expected plan  could appear in the next two weeks, at least the information about this was announced yesterday. Political risks of the upcoming elections in Europe continue to put pressure on the European currency. Today, the market focus will be on small block of US economy data  and news from the fields of US-Japan summit.

chart

chart

chart