Since the end of the last week nothing special happens on the market. Dollar and euro quotations strengthened in a narrow range of price - levels 1,4150 and 1,4245 on a background of the neutral base over the USA and EU.
Friday data on retails for September showed growth of sales by 0,6 % on total parameters and by 0,4 % less auto vs. falling of sales for August on similar parameters. In August sales fell by 0,4 % on total parameters and by 0,1 % less auto.
In a counterbalance to these positive indicators data on business investments in August decreased, growth of these parameters was down 0,1 % vs. growth of the last month by 0,5 %.
Consumer sentiment in October also dipped. Preliminary data of consumer sentiment index was down 82 points against a similar parameter in September - 83,4 points.
Toughening of credit requirements in the USA complicates consumers’ position whose depends on rise in energy prices. Last week oil prices tested one more historical top and reached levels above 85 dollars a barrel. Energy prices in September were up 4,1 %. Petrol prices grew by 8,4 %, having shown the highest rates of growth since March of this year. Food rose in price by 1,5 %. Nevertheless, inflationary pressure was basically constrained.
At the same time wage-push and growth in labor market (as the last employment report demonstrated) stimulate consumer consumption and positively influences retail sales.
Before the G7 summit, which will take place at a weekend in Washington, market participants do not hurry up with opening of long-term positions. It is expected that at the summit the question on sharp euro strengthening against the basic world currencies will be raised. Now traders wonder how G7 will react to euro strengthening. Rise in single European currency caused fears of the European politicians as, from their point of view, it can affect negatively growth of export from Eurozone and the general rates of economic growth.
Most likely tomorrow nothing essential will happen on the market, among tomorrow’s important news it is possible to mark data on industrial production of the USA and volume of investments. However while there are no good preconditions for entering market. Therefore while we remain outside the market.
