US stock indexes showed strong growth on Friday against the publication of weak statistics on the US labor market, where unemployment remained at 5.1%, the number of jobs outside the agricultural sector rose by 142 thousand, against the forecast of 201 thousand. In addition, the average wage has not changed in September, which was 0.2% worse than expected figure. This fact increased the probability of saving interest rates of the Fed this year. Today we recommend paying attention to statistics on non-productive PMI (14:00 GMT). In the near future investors will wait for the publication of minutes of the previous meeting of the Federal Reserve, which will be released on Thursday and the start of corporate reporting season in the US. Our medium-term outlook remains positive.
European stock indexes rose on Friday against the background of the positive impact of the statement of the ECB chairman regarding the return of economic growth in the euro area and the success of the program of quantitative easing, which in the case need may be reinforced by additional stimulus measures. British investors were supported by the positive statistics on the growth of the construction PMI to 59.9 vs. anticipated 57.5. Today it has been published statistics on the service PMI in the Eurozone and the UK, which fell respectively to 53.7 and 53.3, vs. forecasted 54.0 and 56.4. Our medium-term view remains negative, but the deterioration of a number of macro indicators offsets positive from the program of quantitative easing in the US.
Markets in the Asia-Pacific region today showed growth on the back of positive sentiment in the United States after the publication of a report on the US labor market. The mood of investors is affected by the statistics from the University of Melbourne regarding the growth of inflation in September to 1.9% compared with the same period last year. Analysts had forecast inflation at 1.7%. Chinese stock markets are closed today due to public holidays, which end tomorrow. Japanese investors were disappointed by the data on reduced growth rate of wages in the country to 0.5% in August, which is 0.2% worse than analysts' forecasts. Our medium-term outlook remains positive, and tomorrow we recommend paying attention to the statement by the Reserve Bank of Australia on monetary policy.