European premarket from Sergei Kostenko

 

The optimism of the last week starts to deflate

 

European stock market ended the week in a strong rally because of a negative statistics from the U.S. labor market, which showed worse-than-expected data on the number of new jobs in August. The number of jobs grew only to 96,000 against an expected growth of 121 000. Such a reaction of the market due to the fact that the negative data from the labor market will force the Fed's decision to resume new stimulus measures to support the economy.

 

Index DJ EURO STOXX BANK up to previous trading closed at 107.30 (+2.81%). Shares of Deutsche Bank, UniCredit and Societe Generale soared from 4.39% to 6.83%.

 

Major European indexes at the close of the previous trading session: FTSE 100 - 5,794.80 (+0.30%); DAX 30 - 7,214.50 (+0.66%); CAC 40 - 3,519.05 (+0.26%). Futures on the DJ STOXX 50 in the morning prior to the opening of trading in Europe is 2,536.00 (-0.12%). Trading in Europe opened with a slight decline of the major stock indexes.

 

European index of "blue chips" FTSEurofirst 300, closed on Friday at 1,106.72 (+0.18%).

Before the opening of the European session US yield on 10-year T-Note is 1.64% (-0.026 NCP), the 10-year German Government Bonds is 1.52% (+0.003 NCP), and the 10-year UK Government Bonds is 1.68% (-0.030 NCP), the 10-year Spanish Government Bonds 5.69 (+0.048 NCP), 10-year-old Italy Government Bonds 5.09 (+0.091 NCP).

 

Oil futures in London on the morning prior to the opening of the European trading session, moving in different directions on a background of weak data on the Chinese economy. Industrial production in China grew by 8.9% in August against its July value of 9.2%. These imports have also deteriorated, showing a decline of 2.6% y / y in August, against expectations of a 3.5% growth. This, of course, continues to point to the continued slowdown in the Chinese economy, which, of course, talks about the prospects of weak energy consumption.

 

Brent Oil (ICE) in morning electronic trading before the opening of Europe at 114.40 (+0.13%), and U.S. crude oil WTI (ICE) 96.27 (-0.16%).

 

Gold futures morning at 1,739.80 (-0.04%), quotes copper at 365.75 (+0.34%).

Commodity Index CRB Index for the previous trading day was 311.67 (+0.90%).

 

In the currency market correction with a little strengthening of the U.S. dollar after a much-weakened at the end of last week, against the decision of the ECB to conduct repurchase of debt securities of weak eurozone countries and frankly bad statistics from the U.S. labor market.

Futures on the dollar index, which reflects the value of the U.S. currency against a trade-weighted basket of currencies, is 80.26 (+0.03%).

 

Prediction of the day:

One can assume that after the strong growth in the euro against the dollar in the Forex market correction occurs. Investors continue to expect news from the eurozone. Another lack of agreement between the three lenders and Greece has a negative pressure on the euro. EURUSD pair may adjust the level of 1.2687.

 

Events today:

Moscow time

12.30 Eurozone Sentix investor confidence from September n / a; -30,4; -30,3

23.00 U.S. Consumer Lending July n / a; 9,1 billion dollars, 6.5 billion

Sergei Kostenko

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