15.12.2014 - Today we expect a correction, but investor sentiment deteriorates
The US stock market on Friday showed a significant decline amid worsening expectations of investors in connection with the negative data on the industry in China, which growth slowed to 7.2%, against 7.7% in the previous period. In addition, shares of companies in the oil sector showed a strong decline due to low oil prices. Today we can see a correction in the US market, but the medium-term trend remains negative. The course of trading will be affected by the data on industrial production in the US (14:15 GMT). Investors will not increase the position before the publication of the minutes of the previous meeting of the Fed. We maintain our medium-term negative outlook on the US indexes.
European stocks showed a strong decline amid a political crisis in Greece, which could lead to a change of government and the worsening debt crisis in the Eurozone. It is worth noting that oil prices had a negative effect on the shares in the sector. In addition, industrial production in October showed growth of only 0.1% against the expected 0.2%. Today, it is worth paying attention to the balance of production orders in the UK and a monthly report of the central bank of Germany (11:00 GMT). We expect a small correction today, but a negative trend persists. We expect European indexes to fall in the medium term.
Markets in the Asia-Pacific region showed a decline amid falling US indexes. Results of the elections in Japan, where the Prime Minister party won did not surprise investors and did not strongly affect the course of trading. It is worth noting that the People's Bank of China published a report, according to which GDP growth will slow in 2015 to 7.1%, compared to 7.4% this year. Tomorrow will be published important data on the industry in China and the minutes of the meeting of the Reserve Bank of Australia. We maintain our medium-term negative outlook on the markets of the region.