07.12.2015 - Investors’ sentiment significantly improved

American stock indexes showed strong growth against a background of positive statistics on the labor market in the country where the unemployment rate remained at 5.0%, but the number of non-farm payrolls increased by 211 thousand, indicating a steady improvement in the labor market the country and has led to increased confidence in the Fed's interest rate hike this month. Today, investors' activity will be reduced, and the dynamics of trading may be slightly affected by the news in terms of consumer lending in the US (20:00 GMT). The growth potential in the near future is limited and we can see a substantial correction after the current consolidation.

October 16, 2015 USSPX Graph

European stock markets began to recover positions after unduly sharp fall in prices at the end of last week, caused by less favorable incentives from the ECB. Today was published statistics on the volume of industrial production in Germany in October by 0.2%, against a decline of 1.1% in the previous month. The index of investor confidence in the euro area from Sentix in December rose to 15.7 that is worse than the forecast of 17.2, but better than the previous value of 15.1. Tomorrow will be published important data on GDP growth in the euro area and industrial production in the UK. Today, upward correction on the markets is likely to continue. Our medium-term outlook remains positive due to the favorable impact of quantitative easing in the Eurozone.

Stock markets in Asia and the Pacific show an improvement in investor sentiment following the rise in US stock indexes on Friday. Measures to stimulate the economy in the euro area will help to increase the consumption of Asian goods in EU. The dynamics of trading in Japan, is positively impacted by the lower yen against the US dollar. Tomorrow we should pay attention to the statistics on the growth of Japan's GDP in the third quarter, the volume of consumer credits and balance of payments. At the end of the week will be issued a large block of important statistics in China. We expect growth in the markets of the region in the medium term.

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