12.10.2016 - Start of the corporate reporting season in the US has disappointed markets

Major US stock indexes showed a decline on a background of a bad start of corporate reporting season in the 3rd quarter, which started with the publication of aluminum giant Alcoa, which has not met expectations and has led to a decrease in the company's shares by 11.4%. Today, investors’ sentiment will affect the publication of minutes of the previous meeting of the US Federal Reserve Open Market Committee (18:00 GMT). Investors will also continue to monitor the dynamics of oil prices, which have a strong impact on the energy sector. On Friday will be published important data on US retail sales. In addition, a strong influence on the mood of investors in the near future will have the Fed's officials’ rhetoric and in the case of hawkish statements, stock indices in the US will decline. Our medium-term outlook for the US stock market remains negative and we expect a strong decline in the coming months.

Stock markets in Europe generally show a decline on a background of the unsuccessful launch of the corporate reporting season in the US and fears of the consequences of the exit of Great Britain from the EU. Investors continue to monitor the movement of the British pound, which has fallen sharply in recent days, but regained some ground today. In addition, a strong influence on British investors’ mood tomorrow will have the Bank of England's decision on monetary policy. Today, it is worth paying attention to the data on the volume of industrial production in the euro area in August (09:00 GMT). We forecast a drop of stock indexes in Europe in the medium term and in the near future.

Major stock indexes in the Asia-Pacific region today showed a decrease. The Chinese market has affected the weakening of the yuan. The price of the yen continues to consolidate and in case of resumption of decline against the backdrop of the rhetoric of representatives of the Bank of Japan, according to which is possible further easing of monetary policy, the negative dynamics of the Japanese currency accelerated, which is positively displayed on the country's stock market. Today has been published statistics on the volume of orders for engineering equipment in Japan that slowed the fall in September to 6.3% for the year, compared to 8.4% in August. We expect a decline on the stock markets in the region, and tomorrow we can to see increased volatility following the publication of a report on China's trade surplus.

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