The movement of the major US stock indexes shows the uncertainty of investors before the Fed meeting on December 15-16, which according to forecasts of most analysts will raise interest rates. This event has already been partially priced in, and the focus will be on the Fed's rhetoric on future plans on monetary tightening in the country. Today, the dynamics of trading will affect news on retail sales (13:30 GMT). In addition, least strong influence will have news on business inventories and consumer confidence in the US (15:00 GMT). We maintain a medium-term negative outlook on the euro and expect strong volatility next week.
European stock indexes are falling on the background of fixing positions before the Fed's decision on interest rates. Investors fear strong movements and close positions before the end of the year. Yesterday was published statistics on weak UK trade balance, whose surplus amounted to 11.8 billion in October, against 8.8 billion in the previous month. Today it became known that the volume of production in the UK construction sector rose in October by only 0.2%, against expected growth of 1.1%. We maintain a positive medium-term outlook due to the positive effect of the program of quantitative easing in the Eurozone and expect high volatility next week.
Markets in the Asia-Pacific region showed different dynamics. The growth of export companies in Japan, amid the weakening of the yen was the main cause of rising Nikkei 225. Most of the indexes in the region fell amid growing uncertainty in global stock markets before Fed decision on interest rates, raising them will be negatively displayed on the mood of investors. The growth of foreign investment in China slowed to 7.9% per year against 8.6% in October. We expect strong price movements in the next week on Monday and special attention should be paid to data on industrial production in Japan.