02.11.2015 - Volatility on the markets will be increased this week

US stocks fell on Friday amid fixation position after strong growth during the week. In addition, the dynamics was affected by contradictory statistics. Thus, personal income and consumer spending rose in September by 0.1% against an increase of 0.4% in August. On the other hand an important indicator of Chicago’s manufacturing PMI pointed to the expansion of the sector and totaled 56.2 in October versus 48.7 in September. Today, investor sentiment will be influenced by statistics on US manufacturing PMI (15:00 GMT) and construction spending (15:00 GMT). Our medium-term outlook remains positive, and we expect reaching record highs during next weeks.

European stock indexes finished the last trading day of the month near the previous close despite the positive statistics on the unemployment rate in the euro area, which fell by 0.1% to 10.8%, which was significantly better than expected 11.0%. At the same time, core consumer price index rose to 1.0%, vs. predicted 0.9% .Today was published data on manufacturing PMI in the Eurozone and the UK, which totaled 52.3 and 55.5 against forecasts of 52.0 and 51.3 respectively. Tomorrow we should pay attention to the speech of the ECB President Mario Draghi. We maintain a positive medium-term outlook for European markets and we expect continued growth in the coming weeks.

Markets in the Asia-Pacific region fell today despite the improvement in the industry in China. Thus, the manufacturing PMI in the country in October rose to 48.3, vs. predicted 47.7, but the indicator is still below the level of 50.0, indicating a contraction in the sector. Similar rates in Japan and Australia were 52.4 to 50.2 respectively, against the previous levels of 52.5 and 52.1. The strengthening of the yen against the US dollar was negatively displayed on the stock prices in Japan. Tomorrow, we recommend paying attention to the statement by the Reserve Bank of Australia, but do not expect to change the settings of monetary policy. Our medium-term outlook for the market in the region remains positive.

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