European premarket from Sergei Kostenko

 

Today everything the focused on the Fed's decision on monetary policy

 

European stock markets closed mixed on Wednesday in anticipation of the Fed's monetary policy, which will be announced today at 21.15 Moscow time. Constitutional Court's decision to approve the participation of Germany to stabilize and to support the European stock market. Growth leaders were banking stocks.

Index DJ EURO STOXX BANK up to previous trading closed at 110.95 (+1.19%). Shares of Barclays, Lloyds Banking Group and Royal Bank Scotland Group rose from 1.64% to 3.78%.

Major European indexes at the close of the previous trading session: FTSE 100 - 5,782.08 (-0.17%); DAX 30 - 7,343.53 (+1.46%); CAC 40 - 3,543.79 (+0.18%). Futures on the DJ STOXX 50 in the morning prior to the opening of trading in Europe is 2,566.00 (+0.04%). Trading in Europe will open neutral. 

 

European index of "blue chips" FTSEurofirst 300 closed Wednesday at 1,108.02 (+0.08%).

Before the opening of the European session US yield on 10-year T-Note is 1.75% (-0.009 NCP), the 10-year German Government Bonds is 1.63% (+0.012 NCP), and the 10-year UK Government Bonds is 1.83% (+0.093 NCP), the 10-year Spanish Government Bonds 5.64 (+0.021 NCP), 10-year-old Italy Government Bonds 5.05 (+0.018 NCP).

Oil futures in the morning before the opening of the European trading session, practically does not changed pending to a decision by the Fed's monetary policy. If Bernanke will signal that the Fed will embark on new stimulus, it will support the oil quotes.

Brent Oil (ICE) in morning electronic trading before the opening of Europe at 115.88 (-0.07%), and U.S. crude oil WTI (ICE) 97.06 (+0.05%).

Gold futures morning at 1,732.70 (-0.06%), quotes copper at 369.30 (+0.01%).

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

 

In the currency market the dollar going down against the European currencies with the exception of raw materials, which are adjusted against yesterday's data on U.S. crude stocks, which rose by 1.99 million barrels to 359,092 million barrels last week.

Futures on the dollar index, which reflects the value of the U.S. currency against a trade-weighted basket of currencies, is 79.59 (-0.17%).

 

Prediction of the day:

Today, all the attention to the Fed. If there would be a signal that the Fed will begin a new economic stimulus measures, it will have a negative impact on the U.S. dollar.

 

Events today:

Moscow time

11.15 Switzerland Producer Price Index in August n / a; -0,2% m / m, -0.3% m / m

11:30 Switzerland Swiss National Bank's decision on interest rates in September n / a; <0.25%; <0.25%

Publication 12.00 Eurozone ECB monthly bulletin

16.30 Canada price index on the primary market in July n / a; 0,3% m / m and 0.2% m / m

16.30 The level of capacity utilization Canada Q2. 2012 n / a; 81,1%; 80,7%

16:30 U.S. Producer Price Index in August n / a; 1,2% m / m, 0.3% y / y

16.30 U.S. The number of applications for unemployment benefits for the week 2-8 August n / a; 370,000; 365,000

Basic 16.30 U.S. producer price index in August n / a; 0,2% m / m, 0.4% y / y

18:30 U.S. natural gas reserves for the week 2-8 August n / a; n / a; 28 billion cubic feet.

20:30 U.S. Fed's decision on interest rates in September n / a; <0.25%; <0.25%

22:00 U.S. Fed's publication of economic forecasts

22.00 U.S. Federal budget balance in August n / a; -157,1 billion; -69.6 billion

22.15 U.S. Fed Press Conference

 

Sergei Kostenko