04.11.2015 - US indexes are approaching historic highs
US stock markets continue to show growth on the back of positive corporate reporting season. Among the broad equity index S&P500 75% of companies have shown profit growth that beat expectations, but revenue fell among 55% of companies that have already reported. It is worth noting that the volume of factory orders in the US fell in September by 1.0%, which is 0.2% worse than forecast. Today, investor sentiment will be influenced by the news on non-productive US PMI (15:00 GMT) and the speech of the Fed chief (15:00 GMT). We are waiting for release of important statistics on the labor market of America on Friday and given the approach of indexes to highs not rule out a correction in the near future. Our medium-term outlook remains positive.
European stocks show different dynamics. Thus, today has been published statistics on the service PMI in the euro zone, which fell by 0.1, to 54.1. At the same time in the UK, the figure rose to 54.9, which is 1.6 better than the previous month. Investor sentiment tomorrow will be affected by the European Commission economic forecasts and data on retail sales in the euro area, as well as the report of the Bank of England on inflation. We expect steady growth in European stock markets due to the improved macroeconomic data and the expected additional stimulus by the ECB after the meeting of the European regulator in early December.
Markets in the Asia-Pacific region today show growth against the background of the global improvement in investor sentiment. It should be noted that investors' attention is focused on the public offering of shares of Japan Post, which is the largest IPO since 1998. Increase of shares in Japan is also due to strong corporate reporting season in the country. Optimism in the Chinese market is also due to strong data service PMI from Caixin, that in October rose to 52.0, against 50.5 in September. We expect growth on the markets of the region in the medium term.