European premarket from Sergei Kostenko

 

The market continues to live on the expectations of the Fed meeting

European stock markets closed mixed on Tuesday in anticipation of the German court decision on the constitutionality of the ECB’s action on the purchase of the Bills of troubled eurozone countries, as well as the Committee on the Federal Open Market of the USA. According to rumors on the market, most likely the German Constitutional Court would not object to the ECB.

Index DJ EURO STOXX BANK up to previous trading closed at 109.64 (+1.88%). Shares of UniCredit, BNP Paribas and Deutsche Bank rose 1.25% to 4.10%.

Major European indexes at the close of the previous trading session: FTSE 100 - 5,792.19 (-0.02%); DAX 30 - 7,310.11 (+1.34%); CAC 40 - 3,537.30 (+0.89%). Futures on the DJ STOXX 50 in the morning prior to the opening of trading in Europe is 2,564.00 (+0.20%). Trading in Europe will open growth of the major stock indexes.

 

European index of "blue chips" FTSEurofirst 300, closed on Tuesday at 1,107.17 (+0.33%).

Before the opening of the European session US yield on 10-year T-Note is 1.71% (+0.008 NCP), the 10-year German Government Bonds is 1.57% (+0.025 NCP), and the 10-year UK Government Bonds is 1.74% (+0.006 NCP), the 10-year Spanish Government Bonds 5.70 (-0.006 NCP), 10-year-old Italy Government Bonds 5.04 (-0.046 NCP).

Oil futures morning before the opening of the European trading session, grow, despite the data from the American Petroleum Institute (API), which pointed to the increase in oil inventories last week to 221,000 barrels to 359,018 million barrels. The main reason for the growth is the expectation of stimulus from the Fed.

Brent Oil (ICE) in morning electronic trading before the opening of Europe at 115.72 (+0.28%), and U.S. crude oil WTI (ICE) 97.21 (+0.04%).

Gold futures morning at 1,739.20 (+0.25%), quotes copper at 369.05 (-0.18%).

Commodity Index CRB Index for the previous trading day was 314.90 (+0.53%).

 

In the currency market, the U.S. dollar keeps falling in anticipation of the Fed meeting. Despite the fact that the probability of launching new incentive is low, market participants do not exclude this possibility on a background of weak statistics from the U.S. labor market. If, indeed, such measures are taken, the growth of risky assets will only intensify.

Futures on the dollar index, which reflects the value of the U.S. currency against a trade-weighted basket of currencies, is 79.80 (-0.05%).

 

Prediction of the day:

EURUSD pair still can grow up to the level of 1.2940 on expectations of stimulus from the Fed.

 

Events today:

Moscow time

12.30 UK Changing the number of applications for unemployment benefits in August n / a; 100; -5.900

12.30 UK unemployment rate in July n / a; 8,0%; 8,0%

12.30 UK index of average wages in July n / a; 1,5% 3m / y and 1.6% 3m / y

13.00 Eurozone Industrial Production July n / a; 0,0% m / m, -0.6% m / m

13.00 UK's leading indicators index in July n / a; n / a; -0,3% m / m

15.00 Great Presentations by the Monetary Policy Committee of the Bank of England Broadbent

16.30 U.S. Import prices in August n / a; 1,4% m / m, -0.6% m / m

18.00 U.S. Wholesale Inventories July n / a; 0,3% m / m, -0.2% m / m

18.30 U.S. Crude Oil Stocks for the Week 2-8 August n / a; n / a; -7,4 million barrels.

 

Sergei Kostenko