05.09.2014 - The ECB's decision could not support the American and Asian markets
American stock indexes showed a slight decline yesterday despite the decision of the ECB on monetary easing and a positive data on trade balance deficit which narrowed to $ 40.5 billion in July due to the growth of exports. Also non-manufacturing PMI rose to 59.6, against an expected decline to 57.3. Investors are not in a hurry to accumulate positions due to strong resistance level around which they are now and expectation of the publication of the data on the labor market in the United States (12:30 GMT). We maintain a medium-term negative outlook, and anticipate the reduction of indexes in the near future.
Major European indexes showed an increase yesterday after the ECB decided to lower interest rates by 0.1%. Thus, the rate of lending decreased to 0.05% and the deposit rate to a negative value of -0.20%. Investors also reacted positively to the news on the growth of industrial orders in Germany in July by 4.6%, which is 3.0% better than the forecast of analysts. Today the course of trading will be influenced by the statistics on the euro area GDP (09:00 GMT) and the dynamics of American indexes. We maintain a medium-term negative outlook, but expect the growth of indexes in the near future.
Most markets in the Asia-Pacific region showed a decrease on the background of the negative mood of investors in the United States despite the easing of monetary policy by the ECB. The devaluation of the Japanese yen was unable to support the Japanese market, and Australian investors were disappointed by the news of reducing the price for iron ore in China and gold on world markets. We forecast drop in the indexes in the region amid expectations of a significant correction on the American market.