12.09.2014 - EU approved new sanctions against Russia

Volatility on the American stock market is extremely low due to lack of drivers for future growth. Despite a number of negative factors indexes continue to consolidate near the current levels. Thus, in the European Union approved the next round of sanctions against Russia, which has a negative impact both for the Russian economy, and the European one. The situation in Ukraine remains tense, and agreement on a cease-fire is constantly violated. The number of initial unemployment claims in the United States has grown to 315 million, against the expected 306 thousand. Today we should pay attention to the data on retail sales (12:30 GMT) and the index of consumer confidence in the United States (13:55 GMT). We forecast drop in the indexes in the medium term.

The European indexes were down yesterday on the approval of new sanctions against Russia. Analysts do not expect an improvement in the situation associated with the Ukrainian crisis and noted negative consequences for both sides. At the same time, concerns about the exit of Scotland from the United Kingdom declined. Today we should pay attention to the statistics on industrial production for July and the level of employment of the Eurozone in the second quarter (09:00 GMT). Our outlook remains negative.

Markets in the Asia-Pacific region have slightly changed. The Japanese market continues to gradually rise on the background of industrial production growth by 0.4%, which is 2 times the expected rate. The volume of loans issued in China rose to 702.5 billion, against the previous figure 385 billion. The financial sector in Australia shows a negative trend due to the fall of the national currency. In addition prices for iron ore continue to push down the indexes. We forecast the fall on the markets in the region in the medium term and even the devaluation of the yen makes no significant momentum for the Japanese market.

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