US stocks stabilized after the sharp fall caused by negative news from China. At the moment, investors do not hurry to open new positions. Yesterday started the corporate reporting season in the US. Thus, Alcoa in 4Q reduced revenue by 18%, against a background of falling prices for aluminum. Today, the dynamics of trading will affect the statement of the deputy head of the Federal Reserve Stanley Fischer (10:30 GMT), the index of optimism in small business (11:00 GMT) and the number of vacancies in the labor market of the USA (15:00 GMT). In the near future we may see an upward correction, but the fall is likely to continue in the coming months.
Stock indexes in Europe yesterday showed a decline and is currently increasing within the correction after the sharp fall in the previous days. Today was published statistics on the volume of industrial production in the UK, which in November fell by 0.7%. Analysts had forecasted that figure will remain at the same level. Despite the weak data, investors fix short positions and can begin cautious buying, despite the persistence of instability in China. Tomorrow we should pay attention to the volume of industrial production in the euro area. Our medium-term outlook for European markets remains positive.
Major stock indexes Asia-Pacific region generally showed a decline. Japanese investors returned to the market and continued to sell. Japan's balance of payments amounted 1.42 trillion yen vs. expected 1.52 trillion. The situation in China has stabilized slightly. The fall in commodity markets was negatively displayed on the Australian assets that are highly dependent from the dynamics of prices for commodities. We expect stabilization of the situation in China after which we can see the correction. In the medium term, the situation remains uncertain.