Euro Stoxx 600 lost 0.2 percent. S & amp; P 500 falling 0.2 percent.
After the Governing Council of the European Central Bank ( ECB) left key interest rates unchanged and maintained the parameters of the purchase of assets within the framework of quantitative easing indexes of stock markets overseas and in Europe oscillated within yesterday’s closing. Before deciding on the dance floor was visible cautious growth.
The market did not react to a slightly upwardly revised forecasts of ECB on inflation and economic growth in the euro area in 2016., which announced at a press conference ECB chief Mario Draghi.
pending the decision of the ECB euro gained, however, after the announcement of the European currency area gave the dollar. EURUSD fell by 0.3 percent. in the vicinity of 1.116.
Another day in the downward trend is the yen. Investors look at the government’s decision to postpone sales tax and speculate whether it comes to intervention in the foreign exchange market to support Japanese exporters. USDJPY testing course even level of 108.5, the lowest in two weeks.
On the other hand, overseas float signals with a good situation in the US labor market: decreasing the number of announced job losses, and the number of new jobs in April was revised up.
However, the market focus is Friday’s publication of the dot. unemployment rate in the US in may. Analysts estimate that the rate has dropped in the last year. Month to 4.9 percent. from 5.0 per cent., the number of new jobs in non-agricultural sector increased by 160 thousand., in the private sector – increased by 150 thousand.
at the end of last year. week Fed Chairman Janet Yellen estimated that increases in US interest rates in the coming months may be appropriate, given the improving economic situation.
The market valued the chance to hike in June to 20 per cent., 14 per cent. less than a week ago, and in July at over 50 percent.
Oil prices go down manual, though still morning raw material was slightly positive territory. Market attention focused on Thursday’s OPEC decision of the organization to which its Member States have decided not to establish a maximum level of production for the entire group. The market looks well on the one hand to Iran, whose representatives announced the increase of production, on the other hand, Saudi Arabia, the energy minister publicly announced that it will increase the supply of raw materials.
Thursday’s drop in oil prices slowed down after weekly oil inventory data in the US.
The ECB INTEREST RATE UNCHANGED
Benchmark interest rate refinancing loan is 0 percent. The interest rate on deposits is minus 0.4 percent. Loan rate is 0.25 percent. Analysts had expected the ECB to keep interest rates unchanged.
ECB left unchanged parameters of the asset purchase within the framework of quantitative easing.
the Governing Council of the European Central Bank (ECB) lowered at the meeting in March the basic interest rates. It was also decided to increase the value of the asset purchase in the framework of quantitative easing (QE) to 80 billion euros a month, extended the program of corporate bonds and announced a new round of operations TLTRO.
ECB READY FOR ACTION IF NEEDED – DRAGHI
the European Central Bank is ready to act, if they need to, and can use all the available tools in the framework of the mandate – said the chairman of the ECB, Mario Draghi, supporting previous declarations.
Draghi estimated that the actions of the ECB affect the economy and halt the deterioration of the financial conditions. President of the ECB stressed that the positive effects of the stimulus program are yet to come, and the bank must see the results of actions taken in March.
Bank also announced that the purchase of corporate bonds will start on June 8, and TLTRO 22 June.
the ECB has not changed assumptions adopted in March QE program, and Draghi has held that it will last at least until March 2017.
OUTLOOK ECB DOT. INFLATION AND GDP IN THE EURO AREA IN ’16 SLIGHTLY UP
The European Central Bank predicts that inflation in the euro zone in 2016. will amount to 0.2 percent. yoy, compared to previous forecasts of 0.1 percent. According to the ECB in 2017. Prices will rise to 1.3 per cent., In 2018. To 1.6 percent.
eurozone GDP is the ECB to increase this year by 1.6 per cent., and not, as previously announced 1.4 percent. In 2017. GDP in the euro area is expected to increase by 1.7 percent. and by 1.7 per cent. in 2018., against 1.8 per cent. previously.
PPI in the Eurozone STILL NEGATIVE
Producer Price Index (PPI) in the euro zone fell by 0.3 percent. in April, month-to-month and year-on-year fell by 4.4 percent. Analysts have estimated: mom +0.1 per cent., A yoy decline of 4.1 percent.
OPEC UNLIMITED MINING
During the meeting, representatives of the members of OPEC, which was held on Thursday in Vienna, has not been established a new common policy to boost oil prices, and have not changed the limit of extraction of raw materials.
this means that countries associated in the cartel failed to work out a compromise on a common policy on the supply of oil and shaping its prices.
The new Secretary General of OPEC selected Nigerian Mohammed Barkindo.
oIL STOCKS iN tHE UNITED DOWN
oil stocks in the US fell last week about 1.37 million barrels, which is 0.3 per cent., to 535.7 million barrels.
reserves of distillate fuels, including heating oil, fell by 1.25 million barrels, or 0.8 percent. to 149.6 million barrels – handed the DoE.
On the other hand, gasoline inventories fell during this period by 1 , 49 million barrels, an increase of 0.6 per cent., to 238.6 million barrels.
in the third PPI in the euro area rose by 0.3 per cent. mom and yoy fell by 4.1 per cent., after the adjustment of -4.2 percent.
BREXIT “FACTOR” THE DECISION FED – Tarullo
Daniel Tarullo, member of the board of governors of the Federal Reserve, said on Thursday that a referendum on leaving the UK from the EU will be one of the factors taken into account by the Fed’s decision on interest rates.
job growth in the US in line with expectations – ADP
the companies in the US came in may of 173 thousand. jobs – according to a report of a private company ADP Employer Services. Job growth was in line with analysts’ expectations.
In April came to 166 thousand. jobs – according to data from ADP adjusted, compared to 156 thousand as a result. before the correction.
LESS announced job losses in the US – CHALLENGER
in May, the number of announced layoffs in the US fell by 26.5 percent. compared to the same period of 2015, after an increase in April 2016. by 5.8 percent. – According to a report from Challenger, Gray & amp; Christmas Inc.
GOLDMAN SACHS REDUCES PRICE TARGET FOR APPLE
US investment bank Goldman Sachs on Thursday lowered the price target for Apple’s stock to $ 124 from $ 136, supporting the recommendation ” buy “. For one share of Apple on Wednesday’s closing had to pay 99.25 dollars.
Bank justifies its decision to decrease forecasts for growth in the global smartphone market to 5 percent. from 6 percent. in 2016. and up to 4 percent. with 7 percent. in 2017. Goldman Sachs also reduced its forecast for sales of smartphones by Apple in 2016. to 211 million pcs. of 212 million units.
Oracle sued by was an accountant
software maker Oracle has been sued by his former accountant, who says she was dismissed after the disclosure of its superior prohibited accounting practices. Oracle’s share price during the session, losing as much as 4 percent.
JOHNSON & amp; JOHNSON BUY VOGUE INT.
Manufacturer shampoos Johnson & amp; Johnson announced that he takes over his rival Vogue Int. For 3.3 billion dollars. Vogue products are sold in 38 countries. The transaction will be completed in the third quarter of 2016.
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