The dollar index suspended the decline and continues to be traded in a narrow range near the 15-month low
On Tuesday, the Dow Jones Industrial Average exceeded the level of 22,000 points due to good Apple reports. Its stocks added 4.7%, having demonstrated a growth by 36% since the beginning of 2017. Despite this, yesterday the high-tech index Nasdaq Composite almost did not change due to the decline in Microsoft (-0,44%) and Facebook (-0,33%) quotes. According to the ADP survey of the US labor market, the number of new jobs increased by 178 thousand in July. This is less than the June indicator of 191 thousand. The official data on the labor market and non-farm payrolls will come out on Friday. Today at 14-30 SET the weekly unemployment and at 16-00 CET the ISM Services/Non-Manufacturing Composite PMIs for July, as well as industrial and durable goods orders for June will be published in the US. Preliminary forecasts are moderately negative. Futures for US stock indices are now traded “in the red”. The dollar index suspended the decline and continues to be traded in a narrow range near the 15-month low.
Today the Bank of England meeting is expected
Most European stock markets fell on Wednesday and continue to show negative dynamics. The growth of high-tech companies in the computer sector amid the positive Apple reports could not overcome the fall of the banking and mining sectors, the companies of which had poor reports. The economic activity indicators in the German non-industrial sector by Markit were slightly worse than expected. However, the European stock indices may still reverse upwards due to good reports of the largest Italian bank Unicredit and British retailer Next. In addition, a significant increase in the Eurozone retail sales for June could help in growth. The euro exchange rate has slightly dropped today in anticipation of the next meeting of the Bank of England, which will be held at 13-00 CET. Most likely there will not be a reduction in the rate. However, investors expect the explanations of the British regulator regarding its future monetary policy and its possible tightening. The British pound has been growing against the US dollar for the 5th consecutive day and reached the 11-month high.
The yen exchange rate slightly fluctuates around 110 Yen per 1 US dollar
On Thursday Nikkei fell on the background of government reshuffle. Some market participants doubt Prime Minister Shinzo Abe’s ability to become the head of the Liberal Democratic Party for the third time. In this case, he may lose his position. A noticeable drop was demonstrated by the stocks of microcircuits manufacturers Tokyo Electron (-2.4%) and Advantest (-2.9%). Investors drew attention to the fact that despite the positive Apple reports, the Nasdaq index actually did not grow, and the Philadelphia SE Semiconductor index fell by 0.7%. This had a negative impact on the similar Japanese companies. The yen exchange rate slightly fluctuates around 110 Yen per 1 US dollar.