18.03.2015 - Traders expect increased volatility after Fed statement
US stock indexes showed different direction of movement. Investors negatively evaluated the impact of a possible increase in interest rates of the Fed, which is expected in June on the US stock indexes. At the same time, the statistics on the housing market in the country has disappointed investors. The number of permits issued for construction of houses in the United States rose to 1.09 million, which is 0.02 better than expected, but the number of housing starts fell to 0.90 in February, against the expected 1.05 million. Today, the focus will be on the economic outlook and the Fed's statement on monetary policy the Fed (18:00 GMT). Our medium-term outlook remains positive.
Major European markets showed mixed trends. The UK unemployment rate was 5.7% in January, which is 0.1% worse than analysts' forecasts, but the number of unemployed decreased by 31.0 thousand. The course of trading today will be affected by the trade balance data in the Eurozone (10:00 GMT). The focus will also be the Fed's statement on monetary policy. Investors point to the negative impact of the lack of improvement of the situation of the Greek crisis and the situation in Ukraine. On the other hand, the launch of quantitative easing in the Eurozone stimulates further growth in the stock markets of Europe. We maintain our medium-term positive outlook.
Markets in the Asia-Pacific region showed an increase with the improvement in investor sentiment. In Japan the positive was caused by the expectations of an increase in wages in a number of large corporations. At the same time, exports from Japan rose by 2.4%, while imports fell by 3.6%, which was due to the weakening of the yen and falling oil prices. As a result, the trade deficit in February totaled 0.64 trillion yen vs. expected 1.21 trillion. Dynamics of the indexes in the region tomorrow will depend on today's statement of the US Federal Reserve. We maintain a positive medium-term outlook for the markets of the region.