There was no single trend in the US stock market
The S&P 500 and Dow Jones decreases yesterday whereas Nasdaq 100 gained. Quotations of the Best Buy electronics retail chain rose by 14% due to an increase in sales and its plans to increase dividends and buy back some of its shares. Today futures on US stock indexes dropped. Investors were wary of the statement by the US representative (Robert Lighthizer) at the trade negotiations with China that it might take much longer to sign mutual agreements. The ICE US Dollar Index slightly strengthened yesterday. Market participants assume that US will be able to negotiate favorable trading conditions with China. These indicators of business activity of China and Japan industries were not a good sign. It also contributed to the increase in demand for US dollars, as industrial orders rose in the United States. Today at 14:30 CET GDP for the 4th quarter will be released in the United States.
EURUSD is traded in a narrow range
Market participants are trying to understand what direction will go the US dollar and for now they remain minimally active in euros. Yesterday’s indicators of business and economic confidence and activity in the Eurozone turned out to be rather negative. Today at 11:00 CET data on inflation in Germany for February will be announced. It is expected to increase. The British pound continued its growth yesterday. Investors are expecting a successful solution on Brexit deal. The Goldman Sachs bank has reduced the probability of Brexit’s “no-deal” (the exit of Britain from the EU without mutual agreement) to 10% from 15%. European stock indexes dropped amid increasing global risks and bad corporate news on Wednesday. Quotations of Air France KLM fell by 14% due to disagreements between major shareholders. Shares of British retailer Marks & Spencer fell by 12.5% after the announcement that new projects will require a reduction in dividends and an additional issue. The Beiersdorf - Nivea brand owner company , lowered the forecast of its operating profit for 2019. Its quotations collapsed by almost 10% to a 2-year low and pulled the entire sector of manufacturers of goods for skin care, mouth, hair, and so on.
The Japanese Nikkei fell after reports of the US-DPRK unsuccessful negotiations
The US President Donald Trump and the DPRK head Kim Jong-Un meeting in Vietnam ended without results. Along with the military conflict between Pakistan and India, this may increase global risks. An additional negative effect on Nikkei was caused by the problems in the US-China negotiations that were announced by US Representative Robert Lighthizer. Industrial production in Japan fell by 3.7% in January. This is more than expected. Shares of companies such as Fanuc Corp, Tokyo Electron, Komatsu and Mitsui OSK Lines went down. The sectoral indices like “engineering” and “sea transportation” decreased. The Australianand New Zealand dollar strengthened due to publication of good statistics in Australia. The growth of private investment for the 4th quarter far exceeded forecasts.
Quotations for Coffee rose after many falling days
Vietnam reduced the export of coffee in January-February of 2019 to 284 thousand tons, which is 19.6% less than the same period of 2018. Colombia may temporarily suspend coffee exports, as low international prices do not cover the costs of farmers. This was stated by the Colombian National coffee federation. According to her calculations the current price is 10% lower than the minimum sufficient.