09.02.2016 - The mood on the market remains negative

US stocks yesterday showed a strong decline amid falling stock price of technology and energy sectors. It should be noted that the fall in prices continues on the background of reduction of the likelihood of reaching a consensus on reducing the world's oil production. Investors are waiting for the statements of the Fed chairwoman tomorrow and on Thursday during which she may hint at future plans on the regulator of rising interest rates. Today, the dynamics of trading will affect the index of optimism in the small business (11:00 GMT) and wholesale inventories in the US (15:00 GMT). Despite the probability of correction today, the fall on the markets is likely to continue in the coming months.

Futures on US Stock Indexes

European stocks have slowed the fall today after a strong decline in the previous days. The fall of the banking sector shares and investors' concerns about global economic growth continued to negatively affect the mood of investors. Today has been published statistics on the German trade balance surplus which totaled 19.4 billion euros, in line with expectations. At the same time, in December, industrial production fell by 1.2% against the expected 0.2% growth. The trade deficit of the United Kingdom was 9.9 billion pounds against the forecast of 10.4 billion and 11.5 billion in November. Tomorrow in the UK will be published important statistics on industrial production. We expect growth on the stock markets of the region in the medium term, but in the coming weeks, the decline may continue.

Markets in the Asia-Pacific region continues to be under the pressure of negative expectations of slowing global economic growth. In China, during the week the markets will be closed because of New Year’s celebration. Japanese indexes are falling on the background of the strengthening of the yen, and the negative impact of the situation on foreign markets. The volume of orders for engineering equipment in Japan fell by 17.2% in January compared with the same period last year, which was significantly better than reduction of 25.7% in December. The decline in oil prices is negatively displayed on the dynamics of the Australian market. We expect continued instability on the markets in the coming weeks and would like to note that in the case of correction, the greatest potential for growth has the Japanese market.

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