18.09.2014 - The Fed statement on monetary policy has not improved investor sentiment
US stock indexes finished yesterday's session near the previous close. The main event of the day yesterday was the Fed's statement, in which was noted that the quantitative easing program will be completed in October, after the purchase of assets for 15 billion dollars. Rates will remain at current levels for a long time, but the Fed mentioned that the "exit strategy" will consist of increasing the repo rates and the rates on the deposited funds on the accounts of the Federal Reserve. Consumer inflation yesterday showed a drop by 0.2% in August compared to growth of 0.1% in the previous period. Today the course of trading will be affected by the data on the labor market and the housing market in the United States (12:30 GMT). We maintain our medium-term negative outlook on the American stock market.
European stock indexes ended the trading session with mixed dynamics. So, the British market has fallen, despite the positive data on unemployment, which dropped to 6.2% in July, compared with 6.4% in June. The consumer price index rose in August to 0.4%, which is 0.1% better than the previous indicators and the forecast of experts. Markets reacted positively to the intention of the People's Bank of China to provide 500 billion Yuan to banks in the country, to support the economy. Today we should pay attention to retail sales in the UK (08:30 GMT), but the main event of the day will be a referendum on Scottish independence which can lead to a significant deterioration in investor sentiment. We maintain a medium-term negative outlook on the stock markets of Europe.
Dynamics of indexes of Asia-Pacific region is multidirectional. The Japanese market is supported by a sharp decline of the yen after the Fed statement on monetary policy. In addition, the country's trade deficit narrowed to 0.92 trillion. yen, against the forecast of 0.99 trillion. yen. Chinese and Australian indexes decreased today on the background of doubts that yesterday's statement by the People's Bank of China on the injection of liquidity by 500 billion Yuan will be able to help to improve the situation in the industry. We maintain a medium-term negative outlook on the stock markets in the region.