17.12.2015 - The Fed's decision has led to a rise in equity markets
US stocks yesterday showed strong growth after the Fed on interest rates, which were increased by 0.25% to 0.25-0.50%. In 2016 it is expected to continue to tighten monetary policy and raise interest rates 4 times. This fact has raised investors' optimism due to increased confidence in the improving economic situation in the United States. Today, investor sentiment will affect news on the number of initial unemployment claims, and manufacturing PMI of Philadelphia (13:30 GMT). Our medium-term outlook remains positive, but we note the absence of new drivers for growth and may revise the outlook in the near future.
European stocks rose today following the US stock indexes. Today was published important statistics on the index of business confidence in Germany, which fell to 108.7 in December that is 0.5 worse than analysts' forecasts. At the same time positive for the UK market was the news on the growth of retail sales in the country by 1.7% in November, which is 1.1% better than expected figure. We recall that yesterday in the UK was published data on the decline in unemployment by 0.1% to 5.2%. We predict stabilization on the markets tomorrow and the decrease in the activity before the Christmas holidays. Our medium-term view on the European markets remains positive.
Major stock indexes in Asia and the Pacific showed strong growth after the US markets after the Fed's decision to raise interest rates in the United States. It is worth noting that the move has provoked continued growth of the dollar against the yen, which positively displayed on Japanese equities. Rising interest rates of the Fed will raise the cost of money that appear negative for the emerging markets. We keep medium-term positive outlook, but do not exclude the fall in the coming weeks.