› MARKET REVIEW, APR 09 – APR 13, 2018

MARKET REVIEW, APR 09 – APR 13, 2018

Citigroup inc

The period of corporate reporting begins again. This period is especially interesting and tense for traders and investors working with shares. On Friday, April 13, the international financial conglomerate Citigroup inc. will report. Citigroup inc. is included in the S & P 500 index, and this index is forecast to grow by 19.7%, which will be the largest growth in the last 7 years.

Over the past few months, the value of the shares of this company fell by -6.42%.
And after reaching a minimum since September 2017, the company's shares showed positive dynamics last week. This happened after UBS Holding changed the rating of Citigroup inc from neutral to "buy" and raised the stock price forecast to $ 80. However, it is not in the long run.

MARKET REVIEW, APR 09 – APR 13, 2018


EUR/USD

Competition "Whose news are worse" continues, the end of last week was crowned with the fall of the USD because of the reduction in the number of people employed in the non-agricultural sector (NFP). The previous number of 326 thousand was reduced to 103 thousand, which is 90 thousand less than the forecasts and 138 thousand less than the preliminary data from the ADP. Unemployment remained at 4.1%, although at such rates and given the increase in the number of initial applications for unemployment benefits last Wednesday, one could expect an increase in unemployment. The euro has regained lost ground, having tested the support of 1,224, after negative news from the US, having crossed 1,226 and now it is recovering to 1.23.

The beginning of this week will continue the trend of last Friday, as Monday-Tuesday will not offer volatile news. Today, Germany will post a trade surplus for February, and on Tuesday the USA will publish PPI for March.

On Wednesday, only March inflation and crude oil inventories in the United States will be volatile, closer to the evening the publication of the FRS’s minutes will be relieved.

On Thursday, there will be France's inflation for March, the volume of production in the EU. At 14:30 Moscow time, the publication of the minutes of the ECB meeting on monetary policy will be relieved as well. Further, the US begins to report: import / export price indexes for March, the number of initial applications for unemployment benefits (after negative news last Friday, this news is especially important for the dollar).

On Friday, inflation in Germany and Spain will be known for March and the trade balance of the EU for February as well. The US will publish a report of the IEA, and a member of the FRS, James Bullard, appears publicly. At 17:00 Moscow time, JOLTS will publish the number of open vacancies in the labor market for February. At the same time, the University of Michigan will publish indices of the mood and expectations of consumers. By the end of the week, we traditionally learn the number of drilling rigs from Baker Hughes.

Radically changed on last Friday the picture in a pair does not promise nothing positive to the USD. Moreover, the US president does not pursue a policy in favor of his currency. Therefore, we can expect the recovery of losses of the single European currency this week, it is possible that the pair could return to the average levels of this year 1,235-1,240.

MARKET REVIEW, APR 09 – APR 13, 2018



GBP/USD

The British pound has recovered significantly after the release of negative news from the US (more details in the pair EUR / USD). Having tested the level of 1.40227 pound sterling returned to the corridor 1.41000-1.40227.

On Monday, Britain will give the index of house prices from Halifax for March month / month and year / year. Tuesday will be devoted to the volume of retail sales from BRC for March. The environment is the most volatile for the pound this week. The volume of industrial production for February, the volume of production in the manufacturing industry, the balance of trade in February (also without regard to EU countries) will be released as well. On Thursday, there will be an estimate of GDP growth from NIESR. On Thursday, there will be the balance of house prices from RICS for March.

Against the background of general easing, the pound sterling has every chance to "win" the lost positions of the USD. Watch the news, this pair deserves attention this week.

MARKET REVIEW, APR 09 – APR 13, 2018


Gold

Against the background of the US trade war with China, gold does not lose its attractiveness. And predictably moves enough. There is the news that the US is ready for talks with the PRC, the panic subsides, gold is recoiled in price. On Friday, it became known that Trump had instructed to increase the list of Chinese goods worth up to $ 100 billion from $ 50 billion, the asset immediately restores the position.

In the current situation of trade escalation, not only the economies of the US and China will suffer, but also dependent ones on their country's economy; therefore, it will be possible to talk about more global risks. And not only about the trade war. And today, if the picture does not move to a more diplomatic channel and there is no consensus, gold has all chances to update local highs.

MARKET REVIEW, APR 09 – APR 13, 2018


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