07.10.2016 - The report on the US labor market will lead to an increase in volatility
American stock indexes slightly changed yesterday in connection with the publication of an important US labor market report in September (12:30 GMT). In case of a strong statistics, the probability of the Fed raising interest rates will rise, which is negatively displayed on the dynamics of American stock markets. Rising oil prices and positive statistics on the number of the unemployment claims in the US, which decreased to 249 thousand, against the forecast of 255 thousand, could not lead to continued growth on the markets. On Monday, in the US will be a day off. After a long consolidation, we expect a strong price movement and maintain the medium-term negative outlook.
European stock indexes today are near the previous close due to the expectation of statistics on the US labor market. The positive data on industrial production in Germany, which rose by 2.5% in August after falling by 1.5% in June, could not lead to an increase in prices. It is worth noting that a similar measure in the UK fell by 0.4%. The sharp drop on the British pound has increased the attractiveness of British assets that have become cheaper. We maintain our medium-term negative outlook for European markets and expect a strong price movement in the near future.
Markets in the Asia-Pacific region fell slightly today before the publication of news on the US labor market. It is worth noting that the Japanese market corrected after growing during the previous four sessions. The rising correction of the yen was also negatively displayed on the Japanese market. On Monday in Japan will be a day off, but Chinese investors will return to the market after a long holidays. The fall of the yen could be a support for the Japanese market in the near future. We forecast a drop on the stock markets in the region and we expect a price reduction in the near future.