Weekly reviews

Mario Draghi’s statements have weakened euro, equity markets are set to develop positive

Yesterday, US stocks dropped slightly amid declining oil prices and profit taking by some investors. After a positive trading on Friday, investors took profits on the background of political risks in anticipation of the details on the new US administration's economic policies. The last two weeks have shown that investors have become more cautious and selective in response to controversial Tramp’s political decisions. One of the most controversial decisions was to ban citizens of seven Muslim countries on entering the United States. The ongoing protests and the courts’ relating to that case destabilized the situation in the US and in the world. The decision to remove a part of restrictions on the financial sector have been positively received by the market and could stimulate the growth of the financial sectors around the world.

7 February, Asian stock markets declined, amid weak oil and no desire from investors to take the risks in anticipation of the upcoming meeting this week between US President Donald Trump and Japanese Prime Minister Shinzo Abe. The meeting will be held in Washington on Friday. Also, the negative impact on the market was the news about the decline in international reserves of China, which decreased the seventh consecutive month.

Today Tuesday, European stock markets were trading higher on the weakening of the European currencies and the positive reports of some companies. Positive earnings reports published by manufacturer AMS and manufacturer of food processing equipment GEA. AMS shares gained 13.6%, while the GEA shares rose by 5.5%. Shares of mining companies, including Rio Tinto and Anglo American PLC were trading in the green after JP Morgan raised its price forecast for iron ore for 2017.

During yesterday's speech in the Euro Parliament, European Central Bank’s head Mario Draghi said that he has no plans to tighten the monetary policy.

According to Draghi, a jump in inflation in the euro zone is temporary and largely due to rising oil prices. He also said that the ECB can not be named a currency manipulator, and adopted monetary policy measures reflect differences in economic cycles between the eurozone countries and the USA.

In the political life of Europe, the main event was the statement by the presidential candidate of the center-right party of France, François Fillon, announcing plans to continue the fight for the presidency.

The consumer confidence index of SECO in Switzerland in the first quarter is -1, with the forecast of -11.

The volume of industrial production in Germany fell by -3.0% in December, compared to the previous month, with growth forecast of 0.3%.

The balance of the account of current operations in France in December -1.01 billion, with the forecast of -1.40 billion.

The trade balance of France in December  is -3.4 billion, with the forecast of -4.2 billion.

England price index for housing from Halifax dropped to -0.9% in January, compared to the previous month, with growth forecast of 0.2%.

Yesterday, global markets have increased profit-taking actions mainly amid a sharp decline in the oil market. The European currency has moved to lose after Draghi’s speech in the European Parliament and the declaration of readiness to expand stimulus measures. However, the US markets still trade near historic highs - everything points on the fact that investors are trying to maintain a positive view on the market. Today, the focus will be on US economic data - US trade balance data and consumer credit. However, the risks of anti-Chinese rhetoric by Tramp persist and as a consequence the risks for global trade as well.