Weekly reviews

In focus: Facebook statement and Fed meeting results

As a result of Tuesday’s trading, global stock markets declined. Investor sentiment remains conservative as market sentiment turned increasingly negative amid uncertainty about the US foreign and trade policy. Yesterday’s European economic data almost coincided with expectations. Inflation in the euro zone accelerated stronger than regulator expectations, GDP appeared to be in line with expectations, which, incidentally, did not have an impact on market sentiment. Yesterday, at the beginning of the American session, the European currency strengthened against the US dollar by almost a percentage. US indexes have tried to emphasize the correction, however, were bought amid strengthening commodity markets.

Today, European stocks strengthened after publication of strong data on business activity in the euro area. Automakers and industrial companies at the forefront of growth. China reported strong manufacturing data.

Business activity Index in the manufacturing sector of the euro area in January is 55.2, at the forecast of 55.1. American indexes futures are winning back yesterday's losses. Yesterday, after the closure of trading day, Apple Inc. introduced the reports, the results were better than expected in terms of both revenue and profit. Today, markets expect another IT giant’s reporting. Facebook will present statement data today.

The balance level of the oil market is still in game, as trading keeps on holding around $55. Statistics from the API showed an increase in oil inventories by nearly 6 million barrels. Today, the focus is on the official data in US oil inventories. We expect trading around the level of 55 for today.

Negative sentiment in global markets intensified in connection with foreign trade and currency exacerbations, which was initiated by Trump’s administration. Technical overheat factor is losing importance somewhat. Today, the market’s focus is on the results of two-day meeting of the Fed. The forecast does not suggest any changes in monetary policy, and as always in such a case, investors will analyze the tone and content of the accompanying statement. We believe that the Fed will support markets and share a positive vision for the American economy. The US reporting season continues and appears to be the only supplier of positive news these days. Against this background, today we can see the formation of a positive momentum if the markets will be able to forget about politics.

chart 02.2017

chart 02.2017