09.10.2014 - Investor sentiment improved yesterday

American stock market rose yesterday after the publication of minutes of the previous meeting of the Fed which indicated that the strengthening dollar and a slowdown in Europe, Japan and China are the risks for American exports. In this regard, the expected time of a rate hike was postponed from July to August 2015, and some members were in favor of the need to maintain rates at current levels until the end of next year. Today we should pay attention to the data on wholesale inventories in the United States (14:00 GMT). Despite yesterday's rise, we are negative on the prospects for further growth of the American market and maintain a medium-term negative outlook.

August 28, 2014 USSPX Graph

European stocks fell yesterday due to the negative expectations of the IMF regarding the growth of the world economy. Also, investors are not in a hurry to build up positions before the publication of minutes of meetings of the Fed. Today we see an upward correction of the price which slowed down due to weak data on the trade balance of Germany, whose surplus narrowed to 17.5 billion in August, against 22.2 billion in the previous period. French trade deficit increased by 0.3 billion to 5.8 billion. The course of trading today can be affected by the speech of Mario Draghi (15:00 GMT). Today we can see a rise on the European markets but the medium-term outlook remains negative.

Markets in the Asia-Pacific region rose amid improved sentiment in the United States. Investors reacted positively to the fact that interest rates the Fed probably will be raised later than previously predicted. In Australia today was published the data on unemployment which increased by 0.1% to 6.1%, in line with analysts' forecasts. At the moment, traders expect tomorrow's statistics on consumer confidence and bank lending in Japan, as well as the credit market of China. We maintain a medium-term negative outlook for the markets in the region.

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