04.11.2014 - ​The Japanese market continued rapid growth

American stock indexes remained near the previous close levels. Investors decided to take a break due to reaching the levels of historical highs in anticipation of the publication of data on the US labor market. Positive for the market yesterday was the data on the US manufacturing PMI, which rose to 59.0, that is 2.5 better than analysts' forecasts. Today the course of trading will be affected by the trade balance data (13:30 GMT), and factory orders in the US (15:00 GMT). Taking into consideration risks associated with slower growth in China and Europe, we maintain a medium-term negative outlook and the expected correction on US markets today.

European stock markets have stopped growing and is consolidating near yesterday's closing levels. Low activity is explained by the expectation of investors of the statements of the ECB and the Bank of England on monetary policy on Thursday, as well as statistics on the labor market in the US. Today have been published data on the growth of the number of unemployed in Spain by 79.2 thousand, against analysts' forecast of 23.4 thousand. The producer price index rose 0.2%, while analysts have not predicted change. Additional risks for European investors remain Ukrainian crisis. Our medium-term outlook for European markets remains negative.

Markets in the Asia-Pacific region also showed low volatility. The exception was the Japanese market, which continued to rise amid changing parameters of monetary policy of the country, according to which the purchase of government securities will be increased up to 80 trillion yen. At the same time, the pension fund will increase investments in Japanese equities from 12% to 25%. The Australian stock market declines after the news about the growth of the trade deficit to 2.26 billion against 1.78 billion expected. Given the slowdown in the Chinese economy and construction crisis we maintain a negative outlook on the markets of the region except Japan which will continue to grow in the medium term.

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