23.01.2014- Business activity and the labor market today will be in the spotlight
U.S. indexes has shown a mixed performances again. Lack of important macroeconomic news has led to low volatility. Yesterday in the U.S. was published data on mortgage applications, which grew by 4.7%, the previous growth rate was 11.9%. The focus remains on corporate news. 69% of reports exceeded expectations out of 81 companies that already published their quarter reports and are part of a broad U.S. index S&P500. Yesterday, was published a report of IBM according to which, in the Q4 2014 earnings per share were 6.13 dollars, with an average forecast 6.00. At the same time, revenue decreased by 5.5% to 27.7 billion dollars.
Large block of important statistics was released in the UK. The unemployment rate in November fell again to 7.1% vs. expected 7.3%. The number of unemployed reduced by 24 thousand compared with an expected drop by 33.8 thousand. On this background, the British Pound has shown a steady growth.
Monthly report of the Bank of Japan has led to a strengthening of the yen. Yesterday was released the data on an index of business activity in Japan, that came out at 0.3%, which was 0.1% less than the expectations of experts. Now the price of the yen continues to consolidate in the side channel.
Investors today were upset by statistics on China. Thus, the index of leading economic indicators in January was 0.4%, compared to 1.3% in December, while the index of business activity in the manufacturing sector decreased to 49.6, the forecast was 50.6.
The course of trading today will be affected by data on the index of business activity in France (08:00 GMT), Germany (8:30 GMT), Eurozone (09:00 GMT), the unemployment rate in Spain (08:00 GMT) and the balance of payments in euro area (09:00 GMT). In addition, in the U.S. today will be released the statistics on the number of initial claims for unemployment benefits (13:30 GMT) and the index of business activity in the service sector (15:00 GMT) and the manufacturing sector (14:00 GMT).
The movement of oil prices today will be influenced by the report on crude oil and petroleum products inventories in the United States. It is expected that the figure will grow by 0.7 million barrels. Yesterday, oil prices rose against the reduction in inventories of distillers. Support for the bulls was provided by the report of the International Energy Agency, according to which growth in oil demand in 2014 will rise by 1.3 million barrels a day and reach 92.5 million barrels per day.
Gold prices are slightly declining. Investors fear further reduction of the quantitative easing program, a decision on which may be adopted on January 28-29 during the meeting of the FOMC.