14.09.2016 - Traders are preparing for a strong movement
American stocks yesterday showed a decline on a background of negative dynamics of oil prices, which is reflected in the share prices of energy companies. Today, the dynamics of prices will also affect news on oil inventories in the US (14:30 GMT), but active steps will be constrained by the expectation of reports on retail sales on Thursday and CPI on Friday, which is a key indicator for the Fed when assessing the need to increase the interest rates. Volatility according to our estimates will be high, and we expect a drop in prices in the near future and medium term.
Major European stock indexes show moderate growth today after oil prices corrected upwards. It is worth noting that investors are reluctant to open new positions ahead of important events in the near future. On investor sentiment will negatively affect the news of the decline in industrial production in July by 1.1%, which is 0.3% worse than expected. On the other hand, the unemployment rate remained in the UK at 4.9%. Traders await tomorrow's decisions of the Bank of England on monetary policy, as well as the publication of the report on consumer price inflation in the euro area. Volatility will be increased in the near future, and we maintain a medium-term negative outlook.
Markets in the Asia-Pacific region fell today after the European and American markets. The fall of the yen failed to lead to an increase on the Japanese market, which was under pressure from the news about the decline in industrial production in the country by 0.4% against the expected 0.0%. Tomorrow in China is a holiday. Volatility may increase in Australia after tomorrow's release of the employment report in the country. The focus of investors will be on the news from the US and we expect strong movements on the market in the coming weeks. Our medium-term outlook remains negative.