Stock markets await U.S. statistics
This morning was published the rate of inflation in China, and in the second half of the day, we expect similar figures from the United States. This statistic is able to become a significant force that have a particularly strong impact on Wednesday’s trading as the stock and Forex market.
Data from China said the acceleration in growth of consumer inflation in may to 2.7%. However, the first impression was deceptive: lost in the report, analysts pointed low, just 1.6% yoy and inflation excluding prices of food. Moreover, producer prices growth slowed from 0.9% to 0.6%, also indicating a weakening of inflationary pressure.
Now investors are waiting for data from the US. If in the beginning of the week markets, on average, had expected the slowdown in CPI from 2.0% to 1.9% yoy, yesterday’s weak price data U.S. producers and morning low performance of China increase the chances of easing of inflation in the United States. This can strengthen the pressure on the dollar, spurring expectations of imminent rate cuts.
The stock market
On Wednesday morning, US stocks (SPX, DJI) and Asia (Nikkei) little changed to the levels the previous day.
Yesterday at the close of the American session showed several interesting signals from the stock market, which makes sense to pay attention. First of all, it is the General attitude of participants: by the end of the day caution in decision-making began to increase. This contributed to the fact that the touch month highs on SPX at the level of the 2910 had no further and quickly turned into a sale with the final decline of 0.1%.
Such dynamics often precedes the beginning of a bearish trend. Data from the United States in terms of inflation, which will be published today in second half of day, or intensify the looming correction, or Vice versa, to neutralize it. At the same time, the SPX fall below 2872 (MA50) can be an additional technical factor in favor of the bears.
The single currency spent Tuesday mostly in the range of a width of 15 points, adding to the end of the day to 1.1310 1.1325. Despite the relatively sluggish start to the week, it’s worth to note the continued thrust growth of EURUSD, as the Euro fails to avoid significant adjustments after the turn to increase may 31. The new test of bullish sentiment in the markets can be the 200-day average, which currently passes through the 1.1360. Market konsolidiruyutsya on the approach to this mark. Taking a sharp movement at this level will form a strong trend in the direction of the breakout. That is, in our case, can enhance growth.
Gold has returned to an upward trend after touching 1320 and is trading at the moment, 1335, adding 1.1% to the lows of Tuesday. Such a reversal can be a signal of increased anxiety of market participants, despite the relatively careful correction of the stock indices over the past day. Mark 1340 is once again becoming a point of reference. Ability to consolidate above may further encourage buyers.
The Swiss franc over the past month has added to the dollar by about 3%. This week, USDCHF has halted the decline in region 5-month lows. Now Frank gets the impulse for growth due to increased thrust in protecting the assets and following the Euro, which last week increased in tandem with the dollar.
On Thursday the quarterly meeting of the National Bank of Switzerland, where the focus may be the accompanying statement, in which market participants will look for signs of a possible softening of rhetoric after other world Central Bank.
The material is provided,