Markets will try to resume rally

Yesterday, the global markets received a kind of respite on the background of the first positive during this week. First of all, it is the news from the UK, moving away risks for hard Brexit, next one - Trump's meeting with auto business’ big bosses, all this formed the intraday positive sentiment and returned some longs in raw materials and auto production sectors. US corporate season continues to deliver good news to the markets. Based on these facts some US indices updated historical highs. US equity market gain has coincided with the expected upward correction of the US dollar. US dollar index bounced away off 100 points level.

Today, European stock markets continued to gain amid good corporate news. In particular, banking sector in Europe showed good figures. US indices on futures trade are in the green zone today as well.

The oil market remains stable. Brent crude oil drifts lower but still trading slightly above $ 55 per barrel. The news background is not conducive for longs. According to preliminary data from API volume of US crude oil inventories rose by nearly 3 million barrels. Despite the agreement of OPEC + and attempts to cut production, overproduction risks are quite high. This risk may grow closer to the second half of 2017. Today, the focus of the market will be on official data of US crude oil inventories. $54-$56 trading range remains in force.

Yesterday, global stock markets have attempted to get out of the consolidation upward. This is the first attempt to gain after the inauguration of Donald Trump. Strong data on the index of business activity in US and positive corporate reports, the new president actions that were well accepted by the market led to purchases and withdrew the market from consolidation. Other positive factors that were hardly seen in the turmoil of the last days are ECB statements on the possible extension of stimulus for 2018. The US dollar continues to decline; - apparently, the level of 100 points for dollar index will fail to restrain the decrease. However, the new administration actions are key factors for the markets. The risks of slowing global trade still persist. Today, the US markets have a good chance to repeat yesterday's success and show the strong close of the day.

chart 01.2017

chart 01.2017

chart 01.2017