09 January 2014: ECB Meeting Will Outline Views Of The Authorities On The Situation In Europe
DAILY MARKET REVIEWS
By Kristina Leonova: Analyst in Portfolio Asset Management Department.
The FOMC protocol met our expectations, and gave the currency market even more confidence that Ben Bernanke's prophecy will come true, and reduction of incentive will be carried out at each subsequent meeting of the FED. This news gave support to the USD, and pushed its main competitors down, the result being the EUR/USD reaching the level of 1.3550, and traded this morning on a price of 1.3595. GBP/USD was pushed away from maximum levels to the area of 1.6440.
Dow Jones industrial average lost 0.41%, and reached the level of 16462.74. Nasdaq added 0.26% and finished the trading session on the level of 4163.88, and the S&P 500 weakened by 0.02%, to the level of 1837.49 points.
In Europe yesterday, there was quite a lot of macroeconomic statistical data published, the surplus of trade balance of Germany didn't hold to market forecasts in November, and made 17.8 billion Euros against the consensus forecast of 18.0 billion Euros. November industrial orders of the country, on the contrary, increased by 2.1%, having surpassed forecasts of analysts of 1.5%. The Eurozone retails in November recorded an increase of 1.4%, and the Eurozone unemployment rate in November didn't change, making 12.1%, as expected.
Today, the European Central Bank will hold the first meeting on the interest rate in the current year, and in spite of the fact that we don't expect any changes in monetary policy, it will be very interesting to look at how the authorities estimate the current situation. On one hand, weak inflationary pressure becomes more dangerous every day, however, on the other hand, the position of Germany is getting more stable. We would like to remind you that in November, low CPI became the basis for the reduction of the interest rate of the European Central Bank. Since then, falling only continued: the indicator makes, at present, 0.8%, instead of the target level of 2%. Today, everything will depend on the placed accents: if the authorities will claim that the German growth will be sufficient to stimulate restoration of inflationary pressure, it will bring a sense of positivity to the European platforms.
Special attention should also be paid to the unemployment figures coming from the USA.
Copyright: MAYZUS Investment Company Ltd