15.09.2015 - Traders expect increased volatility

US stocks yesterday showed a slight decrease, and continue to be consolidated before the Fed statement on monetary policy. It is worth noting that yesterday was not published an important statistics and investors are in no hurry to build up new positions ahead of the publication of a large number of important statistics this week, and the Fed's decision on interest rates. Today, the dynamics of trading will be affected by the retail sales data, on manufacturing PMI in New York (12:30 GMT), the volume of industrial production (13:15 GMT) and inventories in the US (14:00 GMT). Our medium-term outlook for the market is positive, but we expect strong price movements in the near future.

August 4, 2015 USSPX Graph

European stocks were mixed yesterday, due to the expectation of the Fed's decision on interest rates. Support for the market yesterday was the release of a report on industrial production in the euro area, which pointed to growth in July by 0.6%, against an expected increase of 0.3%. Today the major indexes show a negative trend. The consumer price index in the UK in August was 0.0% for the year. At the same time, the index of business sentiment Eurozone fell in September to 33.3, against an expected decline to 42.1. We expect increased volatility this week, and we expect growth in the European markets in the medium term.

Markets in the Asia-Pacific region show the different dynamics. Chinese indexes decline on weak statistics on industrial production in the country and fears of further slowdown in economic growth in the country. It is worth noting a positive trend of the Japanese market after the statement of the Bank of Japan on monetary policy according to which the regulator will buy assets for 80 trillion yen annually, but can strengthen measures in October, if necessary. We expect growth on the markets of the region after the stabilization of the situation in China.

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