16.08.2016 - Statistics on inflation in the US will lead to an increase in volatility

American stock indexes yesterday showed growth against the background of positive dynamics of oil, which is caused by possible consensus between countries of OPEC and other major oil producers on the freezing of production volumes. Today, the volatility in the US will be increased in connection with the publication of important data on the consumer price index (12:30 GMT) and industrial production (13:15 GMT). The inflation data is critical to the Fed's decision on the timing of interest rate increase. In addition, the minutes of the previous meeting of the Fed on monetary policy will be published tomorrow. According to our estimates, the potential for further growth is low and we expect the beginning of a decline in the near future.

European stocks mainly showed growth during yesterday's trading session. Today, the dynamics of trading will affect inflation data in the UK (08:30 GMT). CPI growth will limit the ability of the Bank of England for monetary easing. We also pay attention to the data on the index of economic sentiment and the trade balance of the euro area (09:00 GMT). Strong influence on the course of trading will continue to provide the dynamics of US indexes and commodity futures. Our medium-term outlook for major markets in Europe remains negative due to the influence of the British exit from the EU.

Markets in the Asia-Pacific region generally showed a negative dynamics. Strengthening of the yen negatively displayed on the shares of export-oriented companies whose revenue continues to decline. On the other hand, the companies focused on the domestic market are affected by the weak level of personal expenses. The Chinese market is supported by expectations of stimulus measures from the government due to the slowdown in the industry and the economy as a whole. On Thursday in Australia will be published important data on the labor market of the country. We maintain our medium-term negative outlook on the markets in the region.

RISK WARNING: Trading of complex financial products, such as Stocks, Futures, Foreign Exchange ("Forex"), Contracts for Difference ("CFDs"), Indices, Options, or other financial derivatives, on "margin" carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading these markets, and seek advice from an independent financial advisor if you have any questions or doubts. Please carefully read our full "Risk Disclosure" and "Risk Disclosures for Financial Instruments & Investment Services". FXFINPRO Capital is the trading name of PFX Financial Professionals Limited, a limited liability company formed under the laws of Cyprus, registered with the Registrar of Companies in Nicosia, Cyprus, under nr. HE 237840 and regulated by the Cyprus Securities and Exchange Commission with license number 193/13.