08.01.2016 - Investors fixed position after a strong decline during the week
US stock indexes showed a strong decline yesterday against the background of the next fall on the stock market of China and halted trading on the Shanghai Stock Exchange. In addition, the price of oil Light Sweet crude oil fell to its lowest level in 10 years due to the strong growth in gasoline inventories. Today we will see a correction after a strong decline, and the main factor that will affect the course of trading will be the publication of an important report on the US labor market for December, which may affect the market expectations about further tightening of monetary policy of the Fed. We expect a rebound in the markets of America for today's session.
European stocks today show an upward correction against the background of positive dynamics on the Chinese market after a strong reduction of the previous days. It should be noted that the upward correction is constrained by weak statistics from Germany. Thus, the country's trade surplus totaled 19.7 billion in December, compared to 20.5 billion in November. At the same time, the volume of industrial production in Germany in November decreased by 0.3%, against expected growth of 0.4%. The dynamics of trading today will depend on the data from the US labor market. Our medium-term outlook for the European market remains positive, and we are waiting for growth in the near future.
Major stock indexes in the Asia-Pacific region showed different dynamics. Thus, the Chinese markets are growing after a strong decline in the previous days. Earlier this week, the trading were twice stopped on the Shanghai Stock Exchange and the fall was due to the weak macroeconomic statistics and the reduction of the yuan to the lowest level since August last year. The weakening of the yen supported the Japanese market, but the Nikkei 225 index finished trading in the red zone. On Monday, Japan will be the day off. We expect a correction on the markets of the region after unreasonably severe decline.