14.01.2016 - Volatility remains high, sentiment worsened
US stocks continued to fall, despite the positive opening of the trading session yesterday on optimism from China, where were published positive news on the trade balance of the country. Falling of oil prices have a negative impact on investor sentiment. Today, we should pay attention to the statistics on the number of initial unemployment claims in the US (13:30 GMT) and the speech by the President of St. Louis Fed James Bullard (13:30 GMT). Risks associated with China, and the tightening of monetary policy of the Fed continues to adversely affect the dynamics of the US indices, which according forecast will continue to decline in the coming months.
Major European stock indexes continued to fall after yesterday's correction. The negative sentiment in the market is due to fears of investors about the unstable situation in China. In addition, yesterday was published data showing that industrial output in the euro zone declined in November by 0.7%. It is worth noting a general deterioration of sentiment in the UK because of concerns regarding a possible speculation on the country's exit from EU. We expect the resumption of positive dynamics in the euro area in connection with the forecasted decline of the euro, lower oil prices and the positive impact of stimulus measures by the ECB.
Major stock indexes fell today, with the exception of the Shanghai market. The reason for the pessimism was the fall of the index in the US amid fears of investors about the slowdown in the global economy and low oil prices. In addition, it is worth noting the negative impact of a stronger yen and weak statistics on the volume of orders for engineering equipment in Japan, which fell by 25.8% in December compared with the same period in 2014. The unemployment rate in Australia has remained at around 5.8%, which is 0.1% less than the forecast. We expect continued instability on the markets of the region in the near future and assume a continuation of the negative dynamics in the near future.