13.10.2016 - Falling exports in China increased investors' concerns

US stock indexes showed little change yesterday, amid a negative start of the season of corporate reporting. Investors expect the decline in corporate profits of companies from the S&P 500 index for the sixth consecutive quarter. The publication of minutes of the previous meeting of the US Federal Reserve showed the difference in opinions between the members of the Federal Open Market Committee, but the likelihood of the Fed raising interest rates in October, remains high. Today will a slight impact will have the news on the number of initial unemployment claims in the US (12:30 GMT), but investors will expect the publication of statistics on retail sales in the US tomorrow. Our medium-term outlook remains negative and we expect a decrease in the near future.

European stocks today decline against the publication of weak statistics from China, which was negatively displayed on the shares of commodity companies. It should be noted that the negative impact on the dynamics of trading still have expectations on deterioration of macroeconomic indicators in the region in connection with the exit of the UK from the EU. Tomorrow we should pay attention to statistics on the trade balance of the euro area, and the central event will be the Bank of England's decision on monetary policy (11:00 GMT). The rhetoric of the British central bank will have a strong impact on investor sentiment. Our medium-term outlook remains negative and we expect a further decline in the near future.

Markets in the Asia-Pacific region today fell against the background of weak statistics on China's trade balance, which surplus in September totaled only 42.0 billion dollars that is 11.1 billion dollars worse than prognosis. Falling exports for the year was 10%, reinforcing fears about the largest economy in the region. Against the background of growing demand for defensive assets strengthened the yen, which increased the pressure on the Japanese market. Tomorrow we should pay attention to the statistics on inflation in China. We forecast a fall on the markets of the region in the medium and short term.

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