17.03.2016 - The mood on the market has deteriorated
US stocks yesterday showed moderate growth after the Fed's statement on monetary policy, which resulted investors expectation of 2 raising interest rates of the Fed this year and the first rate hike may be held in June. It should be noted that the negative was the revision of the forecasts for GDP growth in 2016, which was reduced by 0.2% to 2.2%. Basic consumer price inflation in the US in February increased by 0.3%, which is 0.1% better than expected. It is worth noting that the number of housing starts rose last month to 1.18 million vs. expected 1.15 million. Bulls were upset by the news on reduction of the volume of industrial production by 0.5% in February after rising 0.8% in January. Today, investors will continue to assess the Fed's statement, and statistics on the labor market in the US (12:30 GMT). In the near future we may see a correction on the US markets.
The main European stock indices are now showing strong growth after falling earlier. It should be noted that the strengthening of the euro is negatively displayed on the price of European assets. At the same time decrease in the growth forecasts for the US economy worsens global sentiment. Today has been published statistics on the euro area trade balance surplus which totaled 21.2 billion euros in January, better than the forecast of 20.2 billion euros. The base consumer price index rose in February to 0.8% in the euro area, which is 0.1% better than expected. On the mood of investors today will also affect news on the decision on the monetary policy of the Bank of England, as well as the publication of the previous meeting of the Bank of England (12:00 GMT). Our medium-term outlook for European markets remains positive.
Markets in the Asia-Pacific region showed a positive trend with the exception of the Japanese market, which fell under the pressure of the strengthening of the yen against the US dollar. Investors were slightly disappointed by the data on the trade balance of Japan, whose surplus of 0.17 trillion yen against the expected 0.24 trillion yen. The Australian market has supported the positive unemployment statistics, which level suddenly dropped to 5.8%, which is 0.2% less than the forecast. We expect growth on the stock markets of the region in the medium term, but do not rule out short-term fall in the near future.