On Thursday corrective mood in the European stock markets prevailed amid weak financial statements of European corporations. Strong oil failed to return the positive on the markets as well. The market sentiment is still restrained, and the risk appetite is virtually absent amid US administration concerns and the overheated US indices. The US market yesterday failed to develop a healthy correction as indexes were bought out at a session lows.
Today, stock markets in Europe are trying to develop positive trends. The European economy data today came out positive. High oil prices support European markets as well . Futures for US indices are trading in the green zone.
Today, business activity index in the area of euro services sector, in January came 53.7, as the forecast was 53.6.
Brent crude oil is still close to the highs of the year. The market has received unexpected support due to increased geopolitical risk amid tensions between the US and Iran. The information on the possible introduction of new sanctions against Iran influenced the market. Technical and fundamental factors are the same and they don’t suggest further gains of the oil market. We expect that in the current environment, the oil market will try to stay close to the nearest support $ 56.50.
FOREX market is consolidating today after yesterday's technical correction of the US dollar. Currency instruments came to an important resistance levels, from which local correction may develop. In this regard, US Non-Farm data is crucial, as digits will shed light on further Fed monetary policy steps. With strong labor market figures published, US dollar may return to growing.
By the end of the week, the global markets once again found themselves with the restrained mood. During this week, the markets have lost almost all of the gains from the previous week. FED statement to keep rates unchanged and a positive outlook on the US economy failed to return confidence to markets and brought back risk appetite. Now, the markets are concentrated on one newsmaker - Trump’s administration actions and statements. The course for US currency weakening, which has been clearly indicated by the new US president, led to some gains in metals markets and in partly of oil. The European currency and gold continues to gain. Today, the market’s focus will be on the data from the labor market and the US unemployment statistics. The day promises to be volatile and interesting.