January 19, most European stock indexes, traded with the increase, after the European Central Bank, as expected, left interest rates at a record low. During today’s meeting of the ECB in Frankfurt, the bank left the key refinancing rate at 0% and deposit rates at a negative level of -0.4%. During the press conference, after the ECB meeting, President of the European Central Bank, Mario Draghi, said that the central bank was ready to expand its quantitative easing program, if necessary. In addition, Draghi said that the ECB should not pay attention to inflation, as a problem, which indicates that the ECB will adhere to the intended course to stimulate economic growth. FTSE 100 7,217.42 -30.19 -0.42%. DAX 11.611.49 12.10 0.10%. CAC 40 4,855.42 2.02 0.04%. FTSE MIB 19.432.33 74.23 0.38%. IBEX 35 9.402.90 16.70 0.18%. Stoxx 600 363.20 0.13 0.04%.
January 19, US stock indexes have changed slightly since the opening, as investors are not inclined to take risks, in anticipation of tomorrow’s inauguration of the elected US President, Donald Trump. Expectations of the first steps of Donald Trump, after taking office, intensified after yesterday’s speech by Federal Reserve Chairman Janet Yellen. So, investors care to understand whether the President’s policies will allow the Fed to implement plans for a steady increase in interest rates by the end of 2019. Yesterday, Yellen said that the economy is showing stable growth rates, the level of employment is near maximum levels, and inflation is moving toward a goal. At the same time, she expressed confidence that the improvement of economic indicators will continue. The number of building permits issued in the US is 1,210 million in December, with a forecast of 1,225 million. The number of building permits issued in the United States dropped by -0.2% in December, compared to the previous month, with a 1.1% growth forecast. The volume of construction of new homes in the United States increased by 11.3% in December, compared to the previous month, while the growth forecast was 8.6%. The volume of construction of new homes in the United States, in December, 1,226 million, with the forecast of 1,200 million. The number of initial claims for unemployment benefits in the US is 234,000, with a forecast of 254,000. The index of manufacturing activity from the Federal Reserve Bank of Philadelphia in January was 23.6, with the forecast of 15.8. Dow 19,794.08 -10.64 -0.05%. S & P 500 2.271.54 -0.35 -0.02%. Nasdaq 5,568.26 12.61 0.23%.
Brent crude oil futures quotations strengthened slightly after the International Energy Agency warned that OPEC cuts could backfire as competitors at this time try to increase their market share. Despite promises to cut production by Russia and some other non-OPEC countries, the agency increased its estimates for non-OPEC manufacturers. Today, market participants are awaiting the publication of data on oil and petroleum products from the US Energy Information Administration. The MACD indicator goes down after crossing the zero line, thereby giving a bearish signal. At the same time, moving averages point to a continuation of a bullish trend. After the quotes return above the level of 54.39, we can expect no significant correction to the top, in the direction of the local maximum of 58.37.
During today’s trading, mini SP 500 futures quotes continued to show flat, continuing to move near the local maximum level of 2278, as investors are not inclined to take risks, awaiting the inauguration of the US president tomorrow. The MACD indicator is below the zero line and continues to decline, showing the rising potential of bears, while moving averages are showing a persisting bullish trend. In this situation, there is no reason to expect significant movements, probably quotes will continue to flat, at current levels.
Today, mini DOW futures quotes almost did not change, continuing to trade near the local maximum level of 19967, as investors are expecting the inauguration of President-elect Donald Trump, who will take the oath on Friday. The MACD indicator continues to decline giving a bearish signal, while moving averages show a continuation of the bullish trend. In this situation, the bears can continue the correction down towards the 19258 level (23.6% Fib).
Review prepared by the analytical department https://www.fortfs.com/en/analytics/review
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