Weekly Market Review — February 22 – 26 2016
US, UK and German second reading GDP will be the main events this week
At the end of the week the major currencies closed showed mixed trends. The growth against the US dollar showed Australian dollar (+ 0.65%), Canadian dollar (+ 0.57%), Japanese yen (+ 0.56%) and New Zealand dollar (+ 0.12%). The drop showed the British pound (-0.68%), the euro (-1.09%) and Swiss franc (-1.33%). This trend was due to the negative statistics from the European region. However, investors pay a lot of attention to oil market. On Wednesday and Thursday, oil prices have shown steady growth, which gave optimism and commodity currencies. The main events of this week will be the publication of the second revised reading of GDP in Germany, the UK and the US, which will influence further dynamics of the major currency pairs.
On Monday, US stock markets were closed due to President’s Day. On Tuesday and Wednesday, stocks showed strong growth against a background of recovery in oil prices. On Thursday and Friday the main US stock markets reacted to the corporate’s reporting, which was not very impressive. On Friday US inflation data put some pressure on markets. This week investors also will pay attention to oil market. At the end of the trading week: Dow + 2,62%, S & P + 2,84%, NASDAQ + 3,85%.
European stock markets the same as US’ showed strong growth against a background of recovery in oil prices. Some support to stock markets in Europe provided ECB’s leader statement, he drawn attention to the possibility of expanding stimulus measures at its meeting in March. This week the focus of investors’ attention will be on GDP in Germany and the UK.
Light Sweet Crude Oil Futures, Daily
Quotations of “black gold” showed different trends last week. This trend was due to an agreement between major oil-producing countries to freeze production at the January’s level. However, investors it wasn’t enough for investors. In addition, Iran, just after sanctions were lifted, said that they did not intend to reduce the volume of production. Also, the inventory data from the US Department of Energy indicated on their growth. In the coming week there will be the largest oil producers’ attempt to agree on a reduction of production in order to stabilize world oil prices.