13.11.2014 - Industrial production growth has slowed in China

US indexes ended the second trading session near the previous close levels, which indicates the absence of power for growth. It is worth noting that most US corporations have already reported on the market and remains less drivers for growth. Investors fear the negative impact of the weakness in the euro area and slowing growth in industrial production in China in October. Data on the growth of the US wholesale inventories rose by 0.3% in September, did not affect the auction. Today it is worth paying attention to data on the US labor market (13:30 GMT). We maintain a medium-term negative outlook and the downward movement of indexes in the medium term.

October 6, 2 014 USSPX Graph

European stock markets yesterday showed decline amid the news of significant fines banks in connection with the manipulation of exchange rates. In addition, a negative for the market was the statement of NATO about entering a substantial number of Russian military forces at the territory of Ukraine which is controlled by pro-Russian separatists. In the EU continue to consider another tightening of sanctions against Russia. Negative for the UK market was the statement by the Bank of England to lower forecasts of GDP growth in 2015 and 2016 to 2.9% and 2.6% respectively against the previous forecast the growth by 3.1% and 2.8%. We maintain a medium-term negative outlook on the stock markets of Europe.

Most markets in the Asia-Pacific region show positive momentum despite the possible re-election in Japan. In addition, today was published statistics on the growth of industry in China in October, which slowed to 7.7% against 8.0% in September. The growth of industrial production in Japan in September was 2.9%, which is 0.2% more than analysts' forecasts. Given the weak macro indicators from China and the risks associated with the crisis in the construction sector of the country, we keep negative medium-term view on the Chinese and Australian markets, but expect the growth of indexes in Japan.

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