10.12.2015 - The situation on the market is unstable before the Fed meeting
US stocks yesterday showed strong price movements on the background of fluctuations in oil prices, which fell to its lowest level since 2009 and may continue to decline amid the global oversupply on the market. At the same time, support for the indexes was the news of the approach to the completion of the merger of DuPont and Dow Chemical. The total market capitalization will be 120 billion dollars. Today, we should pay attention to the statistics on the number of initial applications for unemployment insurance in the US (13:30 GMT), but investors will wait for tomorrow's statistics on retail sales in November. Volatility will remain high next week in connection with a possible increase in interest rates of the Fed. We keep medium-term positive outlook, but do not exclude the fall in the near future.
European stocks continue to decline on a background of fixation of positions before the Fed's decision on interest rates. Statistics on the improvement of the German trade surplus to 20.8 billion in November against the forecast of 19.2 billion in the previous period failed to improve market sentiment. Today was released data on the trade balance of the UK, whose deficit was 11.8 billion in October, that is 2 billion worse than the forecast. Today will be published the decision of the Bank of England on monetary policy (12:00 GMT) where despite a likely saving of parameters of monetary policy, may point to the future plans regarding the control of interest rates. We maintain a positive medium-term outlook for the markets of the region.
Stock indexes Asia-Pacific region declined following the US market, which was due to the falling value of the shares of commodity companies and fixing positions before the Fed's decision on interest rates. Today was published report on employment in Australia, according to which the unemployment rate fell to 5.8%, against expected growth to 6.0%. It is worth noting that the number of jobs is growing outside the country's mining sector, which is declining. The fall of indices in the region may continue in the near future, but the medium-term outlook remains positive.