12.11.2014 - Wages in the UK rose more than expected
US stock indexes finished the trading session about the previous close levels. The reason for the low volatility has become a holiday in the US. It is worth noting minor impact on the index of data in small business optimism of the United States, which rose to 96.1, compared with an expected growth to 95.6. Today the dynamics of trading will be affected by the data on requests for mortgage lending (12:00 GMT) and wholesale inventories in September (15:00 GMT). At the moment, we see the lack of strength of bulls to continue further growth of the market. In this regard, we maintain a medium-term outlook and price correction in the near future.
European stock markets rose slightly yesterday against the background of corporate reporting, as well as the expectation of a positive effect of the asset purchase program provided by the ECB, which designed for 2 years and may reach about 1 trillion euros. Today it is worth paying attention to data on the labor market in the UK, where the unemployment rate remained at around 6.0%, the number of unemployed decreased by 20.4 thousand, which is less than the forecast of 24.9 thousand, and wages rose by 1.0% in September, which is 0.1% better than the forecast. Today is also worth paying attention to the quarterly report of the Bank of England on inflation (10:30 GMT) and data on industrial production in the euro area (10:00 GMT). Our medium-term outlook remains negative and we expect the European indexes to fall in the near future.
Markets in the Asia-Pacific region today showed mixed trends due to stopping the growth of the American stock indexes. In addition, the Japanese market was supported by the news about the fact that increase in the sales tax to 10% in October 2015 may be delayed due to the negative impact of the previous tax increase in April from 5% to 8%. The Australian market was supported by data on the index of consumer confidence in Australia, that in November rose by 1.9%, which is 1.0% more than in the previous period. Tomorrow, in the center of investors' attention will be data on industrial production in China, which will affect both the dynamics of indexes in the region and commodity markets. We forecast a drop in Chinese and Australian stock markets and the growth of the Japanese index in the medium term.