07.10.2014 - Markets are waiting the Fed minutes and beginning of the corporate reporting season

Yesterday American indexes showed a slight decrease after strong growth on Friday, which was caused by the positive statistics on the labor market. Today, the course of trading may be affected by the data on consumer lending in the United States (19:00 GMT) and speeches of the Fed officials. The central event of the week will be the publication of the previous protocols of the US Fed meeting, in addition on Wednesday will start corporate reporting season in the United States, which is expected to be worse than the previous. We maintain a medium-term negative outlook on the stock market of the United States.

European stocks rose slightly yesterday on background of improvement the situation in Hong Kong, where continued pro-democracy protests. Macroeconomic data disappointed investors. Thus, the index of investor confidence in the euro area fell to -13.7, against the forecast of -11.8. The reasons for the deterioration in mood have become weak data on the region's economy, doubts about the effectiveness of incentives of the ECB and the Ukrainian crisis. Today it was announced that industrial production fell by 4.0% in August, against the expected drop of 1.4%. We look forward to continuing the downward movement of European indexes in the medium term.

Markets in the Asia-Pacific region are moving in different directions. Investor sentiment has improved due to the reduction of tension in Hong Kong. The Japanese market is supported by the resumption of the devaluation of the yen. Positive for the Australian market was the news on a possible merger of large iron ore producers Rio Tinto and Glencore. It should be noted that the Reserve Bank of Australia left interest rates at the level of 2.50%, but noted the risk of slower growth in China for the Australian economy. We maintain a medium-term negative outlook on the stock indexes in the region.

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