04.01.2015 - Chinese markets declined sharply

Futures on US stock indexes show a strong decrease on the background of the sharp fall on the stock markets of China, which is caused by weak data on manufacturing PMI in China, which continues to point to a slowdown in the country’s economy. Earlier this year, investors will review the portfolio and we expect a high level of volatility. Today, the dynamics of trading will affect the data on US manufacturing PMI and construction spending in the country (15:00 GMT). In case of continued decline in the US market due to the tightening of monetary policy and the lack of drivers for growth, we can revise our medium-term positive outlook. In the near future negative trend may continue.

European stocks today show a decline due to the fall on the stock markets of China, as well as rising geopolitical tensions in the Middle East due to the breaking of diplomatic relations between Saudi Arabia and Iran after the attack on the embassy in Tehran. Positive was statistics for the euro area manufacturing PMI, which in December rose by 0.1 to 53.2. The same indicator in the UK fell to 51.9, against the forecast of 52.8. The current decline may continue in the near future, but low oil prices, the fall of the euro and the positive effects of the program of quantitative easing in the euro zone will support the bulls in the region.

Major stock indexes of the Asia-Pacific region today showed a strong decline on weak statistics from China and rising geopolitical tensions in the Middle East. It is worth noting that China's manufacturing PMI fell to 48.2, against the forecast of 48.9. The comparable figure in Japan was the highest in 20 months - 52.6 that was not able to neutralize the negative impact of the rising yen and falling indexes in China. Volatility in the near future will be high and we do not exclude the correction in the markets after the recent decline.

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