03.12.2014 - Weak GDP growth in Australia, disappointed investors

Major US stock indexes finished the trading session with a slight increase on expectations of new stimulus measures by the central banks of the euro area and China. We recall that earlier was published the data that indicated a slowdown in the growth of industry in China and the Eurozone. Today the dynamics of trading will depend on the data on the labor market in the US (13:30 GMT), the non-manufacturing PMI for November (15:00 GMT) and the publication of Beige Book (19:00 GMT). Increase in volatility is expected on Friday, after the publication of data on unemployment in the United States. We expect a slight increase in the near future, but forecast beginning of a correction in the medium term.

Major European indexes showed mixed trends. Negative for the market was data to reduce the producer price index by 0.4%, which was the fastest pace in 18 months. Today it was announced that the service PMI in the euro area fell to 51.1, which is 0.2 worse than expected and the previous figure, and the same indicator in the UK showed an increase of 2.4 to 58.6. Today is also worth paying attention to the statistics on retail sales in the euro area (10:00 GMT). Investors expect future statements by the heads of the ECB and Bank of England on monetary policy. It is predicted that the ECB will announce on more active incentive measures that support markets. We maintain our medium-term negative view on European indexes, but we expect growth in the coming weeks.

Markets in the Asia-Pacific region ended the day mixed. The reason for the growth of the Japanese market have become stronger sales figures of Toyota vehicles in the United States. PMI service in China estimated by HSBC rose 0.1 to 53.0, that could not lead to a change of negative sentiment. It is worth noting that investors expect new stimulus steps by the Chinese government to support economic growth. GDP data for Australia that in the 3rd quarter grew by only 0.3%, which is 0.4% worse than the forecast resulted in a fall of the national currency and indexes in the country. Our medium-term outlook for indexes in the region remains negative with the exception of the Japanese.

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