US stock indices finished yesterday's trading session around the previous close. It is worth noting that the main negative factor for the market is the deterioration of the economic data in China. According to our estimates in the near future we may see an upward correction in the markets of the country, but in the coming months we may see a continuation of the negative dynamics of prices. Today, the dynamics of trading will affect news on nonproduction PMI and volume of factory orders in the US (15:00 GMT). Particular attention should be paid to the publication of minutes of the previous meeting of the Fed (19:00 GMT). In the near future the US indices will correct upwards, but in the coming months we can see a further decline.
European stocks continue to show a negative trend due to lower stock indexes of China in connection with the poor data on the growth of industrial activity in the country. At the same time, geopolitical tensions in the Middle East continue to have a negative impact on investor sentiment. In December, the service PMI in the euro zone rose to 54.2, which is 0.3 better than expected, but the same indicator in the UK fell by 0.4 to 55.5. Our medium-term outlook for the indices in the region remains positive due to lower euro and the positive impact of quantitative easing in the Eurozone.
Major stock indexes Asia-Pacific region fell due to the weakening of the yuan and investors' concerns about slowing growth in China, which is negatively displayed on the markets of the region. The fall in commodity prices puts pressure on the Australian index. Tomorrow the course of trading will affect the news on the trade balance in Australia. In case of renewed price decline of the Japanese yen, growth on the Japanese equity markets will resume. Our medium-term outlook for the market in the region remains optimistic, despite a possible further fall in prices.