Possible US Compromise Sets Mood In The Markets

On Friday, key stock indexes of Europe showed positive dynamics the second day in a row, based on the information that the Congress of the USA can agree on raising the level of the national debt of the country, having reduced, thereby, the threat of a possible default. It should be noted that negotiations of politicians will proceed, thus republicans already put forward offers on a temporary increase in the ceiling of the national debt of the USA.

In the light of the latest events, the government of the USA hasn't worked since October 1, and meanwhile, October 17 is approaching, when it will be necessary to make the decision on the increase of the ceiling of the national debt of the country.

As a result, the Dow Jones finished the trading week at 15237.11 increasing by 0.73%, Nasdaq increased by 0.84%, S&P 500 added 0.62% traded on a level of 1703.29 points.

From the macroeconomic statistics published on Friday, the consumer price index of Germany for September did not change, as expected. Meanwhile, in the USA, the new reporting season started which brought optimistic vibes on the market. The reporting of the American banks JP Morgan and Wells Fargo, surpassed market expectations. JP Morgan showed a loss following the results of the last quarter, but it is mainly connected with legal costs. Except for this article, the profit on a share made $1.42, whereas an increase to $1.29 was expected. This week, many important corporate publications are expected, tomorrow will we see reports from Coca-Cola, Johnson & Johnson, Intel and Yahoo.

Commodity and currency markets are stable, upward movement of Gold and Silver can be seen, which again left below levels of 1300.00 and 22.00 accordingly. This morning, Gold is traded on a price of 1275.87$ per troy ounce, adding 0.60% and Silver is up by 0.73% at 21.41$ per troy ounce.

Monday is quite poor regarding macroeconomic statistics. Consumer price index has been published in China which recorded unexpectedly high growth of the indicator in September by 3.1%, when -2.9% had been forecasted. In the European region, data on industrial production of 17 countries of the Eurozone will be published.