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    US markets rise as US dollar slumps

    US stock indices posted gains and the US dollar index slumped on Thursday. Therefore, the trend which was mentioned in previous overviews continued, so our analysts recommend using it when creating personal composite instruments. Cisco Systems and TripAdvisor published positive earnings reports yesterday. Their shares boosted 9.4% and 22.5%, respectively. Cisco daily share price growth hit the record high of May 2013. Amid positive news, NASDAQ reached a new 15-year high.

    The economic data released yesterday in the US was worse-than-expected. In particular, Retail Sales in January fell 0.8% for the second time in a row, disregarding the drop in oil prices by almost 40% which started last June. Because of the weak Retail Sales numbers, major investment banks cut their growth forecasts for Q1 US GDP from 3% to 2.2-2.5%. Some of them even do not rule out the revision of Q4 GDP in 2014, down to 1.8% from 2.6% announced in the first estimate. The volume of trading on US exchanges on Thursday was 8% below the monthly average and made up 6.7 billion shares. Today at 15:00 CET Michigan Consumer Sentiment will be released.

    cac40-chart-weekly

    European markets marked gains yesterday as agreements on Ukraine ceasefire were reached. Moreover, the speaker of the Greek Parliament said his country would make every possible effort to come to an agreement with the European Union on Monday. After that the Greek stock index ATG added 7.5%. Note that the euro also strengthened. Although the European market data released yesterday appeared to be weak, the same as the economic reports in the US. Industrial production declined slightly in the EU. The German deflation rate climbed up. However, the German Q4 GDP in 2014 has been published this morning. At 10:00 CET Flash GDP will be released in the euro zone. According to estimates, it should remain unchanged, but now there is a chance it would tick up. European stock indices and the euro are going up as markets expect the data release.

    Nikkei is advancing in tandem with other world stock indices. It was close to the 7.5-year high for the second time, but couldn’t overcome it as the yen strengthened. Recall that Machine orders in December increased greatly. It underpinned the yen. Japanese Q4 GDP will be released on Sunday at 23:50 СЕТ. As our analysts deem, the outlook is positive and might further drive the yen and Japanese stock prices higher.

    Crude oil prices continued to grow. As the number of oil rigs reduced, oil supplies did the same. According to the Center for Energy Studies at the Rice University, since May 2014 to January 2015 the shale oil production at new fields in North Dakota, Texas and New Mexico fell by 75 thousand barrels a day, to 525 thousand. The American oilfield company, Apache Corp, reported losses of $4.8 billion in the fourth quarter of 2014. Now the company plans to reduce the number of operating rigs from 97 in Q3 to 27 by the end of February. Previously, we mentioned that the United States is the only country in the world that has boosted oil production in recent years.

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