16.02.2016 - The drop in oil prices has led to a decline in European indexes
Futures on the US indexes are falling on the background of correction, as well as the resumption of the fall in oil prices after the meeting in Qatar, where representatives of Saudi Arabia, Russia, Qatar and Venezuela have decided not to raise its oil production, but have not agreed on their reduction. Yesterday, the US was a day off because of the President's Day. Today, the dynamics of trading will affect the data on the index of business activity in the manufacturing sector of New York (13:30 GMT). Investors are waiting for a report on the consumer price index, which will be published on Friday and will have a strong impact on investors' expectations regarding the timing of the Fed raising interest rates. We maintain a pessimistic outlook on the US market in the next few months.
Major stock indexes in Europe today are reduced after strong growth yesterday which was caused by the positive dynamics of the banking sector shares and the automotive industry. In addition, support has been the strengthening of the yuan. It should be noted that the main reason for the change of sentiment today was the resumption of the negative dynamics of oil prices. The index of business sentiment in the euro zone fell in February to 13.6, against 22.7 in January. The consumer price index in the UK in January rose to 0.3%, which is 0.1% more than the previous figure. Tomorrow on the movement of British indexes greatly affected the data on the labor market in the country. We expect growth in the European markets in the near future and medium term on expectations of additional stimulus in the euro area by the ECB.
Stock indexes of the Asia-Pacific region rose today and continued positive trend on Monday. Support for the market has been the strengthening of the yuan, as well as the weakening of the yen after falling demand for defensive assets. Further devaluation of the Japanese currency will lead to growth on the Japanese market. Tomorrow we should pay attention to the volume of orders for engineering products in Japan and the data on the index of leading economic indicators in Australia. Volatility in the near future will be increased, and despite a likely drop in the next few days, we can see the continuation of the upward correction on the stock markets of the region in the near future.