DOW JONES AND S&P 500 SHOWED THE HIGHEST DAYLY DROP IN THE LAST 5 MONTHS - 30.1.2018

On Monday, the US stock indices corrected downwards

The main reason for the negative trend was the decrease in Apple stocks by 2.6% because of the reduction in demand for the new iPhone X. Its production may be reduced twofold.

S&P 500 Information technology index fell by 0.9% yesterday, while the major US stock indices Dow Jones, S&P 500 and Nasdaq dropped by 0.3-0.4%. Dow Jones and S&P 500 showed the highest daily decrease in the last 5 months. Yesterday's economic data were neutral. The growth of personal expenses in December coincided with forecasts. Today at 16-00 CET, consumer confidence index for January will be released in the US. The dollar index is currently showing slight fluctuations near its 3-year low. Investors are expecting President Donald Trump’s report to the US Congress on the state of Affairs in the country. Amid the risks in the stock market, the US 10-year bond yield reached a high since April 2014 and amounted to 2.7% in annual terms.

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On Monday, the quotes of European companies fell

Today they have been falling for the second day in a row amid the decline in the futures on the US stock indices.

Today weak indicators of economic confidence for January were published in eurozone. In addition, the GDP growth in the Q4 of 2018 slowed down to + 2.7% in annual terms compared to the Q3 (+ 2.8%). This added a negative to the European markets. Amid of the rising US dollar, the quotes of various kinds of ore mining raw materials have markedly advanced. Because of this, the European index STOXX EUROPE 600 BASIC RESOURCES fell by 1.3%. The banking and financial sectors decreased by 0.8-0.7%. Euro is growing slightly today within its narrow neutral range around the 3-year high.

Today Nikkei noticeably decreased alongside with other world stock indices.

It updated its low in a month. On the background of a decrease in demand for Apple products, the stocks of the Japanese Murata Manufacturing and Taiyo Yuden fell by almost 2%. Because of the drop in oil prices, the stocks of oil companies Japan Petroleum Exploration (-6%) and Inpex Corp (-2.6%) declined. Japanese economic statistics, published this morning, turned out to be neutral. Tomorrow morning, the data on industrial production, the real estate market and construction, as well as the consumer confidence index will be published in Japan. Hong Kong index Hang Seng fell by 1%, the highest daily drop in 6 weeks.

Brent fell and continues to decline today.

The main reason for this was an increase in the active rigs count and oil production in the United States. Market participants expect the growth of US hydrocarbon reserves this week, for the first time in 11 weeks. In addition, oil prices are dropping on the background of the strengthening of the dollar.

Wheat has been rising for the 5th day in a row and updated its 4-month high. The main reason for this was the drought in the US. U.S. Department of Agriculture lowered the condition rating of winter wheat crops (good-to-excellent condition) in Kansas from 37% to 14%. Corn prices also continued to grow.