18.10.2016 - Traders are waiting for the important statistics from the US and China
American stock indexes showed a slight decline yesterday amid weak statistics on industrial production, which rose by only 0.1%, compared with growth forecast at 0.3% in September. Investors are waiting for an important report on the consumer price index in the US (12:30 GMT). In case of accelerating the growth of inflation will increase the likelihood that the Federal Reserve will increase interest rates in December that will be negatively displayed on American stock indexes. We recall that the labor market and inflation are key indicators to which the Fed pays attention while deciding on monetary policy. We forecast a drop in US markets after the end of the current correction.
European stocks show an increase today against the background of the oil price recovery that supports the shares of commodity companies, as well as correction of the US dollar after the recent strengthening. The consumer price index in the UK showed an increase to 1.0% in September, which is 0.1% more than the forecast and 0.4% higher than the previous value. This fact leads to a decrease in the probability of lower interest rates of the Bank of England, which will support the growth of the markets. Investors are waiting for news on inflation in the US, as well as statistics on the growth of China's GDP, which can also lead to increased volatility. Our medium-term outlook for European markets remains negative.
Markets in the Asia-Pacific region today showed an increase due to the positive dynamics on commodity markets and the weakening of the US dollar. Support for the Australian dollar was the growth in sales of new cars in the country by 2.5% in September after a zero change in August. The strong influence on the movement of the region's markets in the near future will be tomorrow's publication of important macroeconomic data of China's GDP growth, industrial production, retail sales and investment in fixed assets. Our medium-term outlook for markets in the region remains negative.