By IFCMarkets

The S&P500 peaked from November 8 last year on Friday. In accordance with the futures quotations its growth may continue today. The Dow and Nasdaq indices showed an increase for the 9th consecutive week. US President Donald Trump announced a possible meeting with Chinese President Xi Jingping in Florida.There was no significant macroeconomic data in US on Friday. Today at 16:00 CET data on wholesale stocks for December will be published in the United States. The ICE US Dollar Index is falling today the 2nd day in a row.

The EURUSD slightly decreased on Friday. Investors have responded to the fall of the German business climate indicator (IFO) in February for the 6th consecutive month to a minimum since December 2014. Eurozone inflation in January fell to 1.4% in annual terms. This increases the likelihood of preserving the ultra-soft ECB policy. This morning the euro strengthened and regained all the losses on Friday. A positive factor for the single currency was the confirmation by Fitch of the Italian credit rating at BBB. The European index Stoxx 50 gained due to good corporate reporting and forecasts by IT companies Sopra Steria (+ 17.8%), chip maker ASM International (+ 11.9%) and chemical company Sika (+ 4%). Today it is not expected to publish meaningful macroeconomic statistics in the Eurozone.

The main reason for this was the general upward trend in all global stock markets in anticipation of a successful outcome of the US-China trade negotiations. Today shares of Japanese companies supplying their products to China continued to be in demand: Keyence Corp (+ 4.3%), Yaskawa Electric (+ 2.7%) and Komatsu Ltd (+ 0.9%). Video game maker Nintendo announced the buyback of its own shares and they have gained 1%. Shares of waste recycling company Envipro Holdings soared by 17.4% due to the message that it will recycle lithium-ion batteries. Australianand New Zealand dollars noticeably strengthened. The main positive for the Australian currency was the rise in prices for raw materials: copper, coal and iron ore. The Qiwi dollar rose due to a 1.7% increase in retail sales in the 4th quarter in New Zealand. Now market participants expect to accelerate the growth of New Zealand GDP.

US Secretary of Agriculture Sonny Perdue announced that China agreed to purchase another 10 million tons of American soybeans. The deal was discussed during a meeting between US President Donald Trump and Chinese Vice Premier Liu He on Friday. This year China purchased 7.6 million tons of American soybeans, whereas in 2018 it was 26 million tons. The reduction in exports to the PRC was caused by an increase in customs duties in the framework of a trade war. Now the situation is changing for the better.

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