Monday brought little changes in the equity markets. However, the currency and the commodities markets were more volatile, because of the rising oil prices and Ben Bernanke’s speech.

Bernanke’s speech

Yesterday the markets were waiting for Bernanke’s speech till late night. However the speech was devoted to another topic than monetary policy. What is more the FED chairman avoided the topic during the question part by repeating old sentences about the temporary increase in inflation.

Scheduled for tonight, the publication of the minutes of last meeting of FOMC, probably will also bring nothing new. It seems that the first opportunity to begin serious discussions on the monetary policy in the U.S. will be the FOMC meeting on 27 April.

Oil in the spotlight

On Monday the price of a barrel of Brent oil jumped to $ 121.26 from $ 118.72 on Friday, setting a new record for the current bull market. It is also the highest level since August 2008. The improving situation in the U.S. labor market, volatile situation in North Africa and the Middle East, as well as the current monetary policy can lead to even higher prices.

Tuesday’s calendar

Today calendar is quiet poor in important data: Services PMI in the  Eurozone(9.58 CET, 3.58 ET) and UK (10.28 CET, 4.58 ET), Retail Sales in the Eurozone (11:00 CET, 5:00 ET, ISM Non-Manufacturing Index in the U.S. (15.00 CET, 9:00), FOMC Minutes (20:00 CET, 14:00 ET).        

Pawel Kordala

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