09.07.2014 - Markets fall in anticipation of tighter monetary policy in the U.S.

U.S. stocks continued to decline in anticipation of tightening monetary policy by the U.S. Federal Reserve. Positive labor market statistics in the U.S., where the number of vacancies increased by 180 thousand to 4.64 million, contributed to the growth of such fears. Today, the course of trading will depend on the minutes of the previous meeting of the Fed (18:00 GMT). Positive report of an aluminum giant Alcoa, slightly improved the market’s sentiment. In the medium term we expect the continuation of the downward trend on U.S. markets.

European stocks continued to fall. Germany's trade surplus rose to 18.8 billion, but in France the trade deficit grew by 0.8 billion to 4.9 billion A significant negative was the news of the fall in industrial production in the UK by 0.7% against the forecast of growth on 0.3%. Today, the markets expect the publication of minutes of the previous meeting of the U.S. Federal Reserve and Mario Draghi speech (18:30 GMT). In the medium term, European indexes are likely to continue to fall.

Markets of Asia-Pacific region fell following the U.S. indexes. The Australian market is falling, despite the positive trend in metal prices. In China, investors were disappointed by the data on reduction of producer price index by 1.1%, while consumer price inflation rose to 2.3%, which is 0.2% worse than the forecast. The Japanese market won back most of the losses of the beginning of the trading session on weaker yen. Our forecasts remain unchanged. Chinese and Australian market will continue to fall in the medium term and the Japanese market can be supported by the weakening of the national currency of Japan.

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