10.11.2015 - Markets are corrected after strong growth

US stock markets yesterday showed a decline, which was due to the lack of power of bulls for continued growth. The likely rise in interest rates is negatively displayed on the stock market, despite the fact that it indicates the strength of the US economy. Among the leaders of the fall yesterday were shares of oil companies. Today, investor sentiment will be affected by the publication of statistics on the index of small business optimism in the US (11:00 GMT) and the performance of the Chicago’s Federal Reserve Bank President Charles Evans (19:30 GMT). At the moment, is likely the continued downward correction in prices due to the lack of incentives to overcome historical maximums. Our medium-term outlook remains positive.

European stocks fell yesterday and continued to show a negative trend today in connection with the assessment of the prospects for further growth in the global economy against the background of slowing growth in China and falling imports in the second largest economy in the world by 16% in October compared with the same period last year. It should be noted that the statistics on the increase in the index of investor confidence in the euro area to 15.1 in November against the forecast of 12.4 was not able to change the mood of investors. Tomorrow focus will be on the data on the industry in China, as well as statistics on the labor market in the UK and ECB President Mario Draghi. Our medium-term outlook for the European market remains positive, but in the coming days we will probably see a continuation of the correction.

Markets in the Asia-Pacific region today showed deterioration in investor sentiment. A slight increase in the index was recorded in Japan, despite the weak statistics on the balance of payments surplus in September, which totaled 0.78 trillion yen against the expected 1.50 trillion yen. The index of business sentiment in Australia fell to 2 in October, compared with 5 in September. Weak data on the consumer price index in China, which was 1.3% in October compared with the previous year points to weak demand in China. After strong growth, we may see a correction on the markets, but the Japanese market will be supported by the devaluation of the yen.

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