03.09.2015 - Investor sentiment has improved
The US stock market yesterday showed strong growth after a reduction of the previous days amid growing optimism about the Chinese crisis. At the same time statistics on the US labor market proved to be weaker than was previously forecasted. The number of jobs in the US private sector grew in August, according to the ADP report by 170 thousand against the expected growth of 204 thousand. At the same time, factory inventories increased in July by only 0.4%, which is 0.4% less than the expected figure. Today, active actions of investors would be deterred by the expectation of tomorrow's report on the US labor market. We expect growth in the US equity markets in the medium term, the trend will be uncertain until the Fed's statement on monetary policy after the meeting on 16-17 September.
European stocks showed moderate growth before the press conference of the ECB President Mario Draghi (12:30 GMT), in which he will point to the impact of the crisis on China's economy in the Eurozone. Today was published statistics on Eurozone’s service PMI, which rose by 0.1 to 54.4. At the same time, that in the UK in August fell to 0.8 to 55.6. Tomorrow will be published important statistics for the euro area GDP for the second quarter. We expect growth on the stock markets in the region in the medium term due to the positive influence of the quantitative easing program and the improvement of macroeconomic indicators of the monetary union.
Major stock indexes in the Asia-Pacific region today showed different dynamics. The Japanese market rose slightly. Chinese markets were closed due to celebration of 70 years of the end of World War II. Australian investors were disappointed by weak data on retail sales, which fell by 0.1% against the expected growth of 0.4%. This negative was not able to be reversed by the trade balance deficit of the country which was 2.46 billion, compared with an expected increase to 3.10 billion. We expect increased volatility in the markets of the region in the near future.