US stock markets showedmoderate growth yesterday on the background of conflicting statistics from the US and strong quarterly reports of companies McDonald's and Home Depot. It should be noted that the consumer price index in the US rose by 0.2% in October, which increases the chance of the Fed raising interest rates in December. The tightening of monetary policy in the US will lead to a drop in the stock markets. In addition, it is worth noting that US industrial production fell by 0.2% against the forecast of growth by 0.1%. Today, the dynamics of trading will be affected by the housing data in the US (13:30 GMT) and the publication of the minutes of the previous meeting of the Fed (19:00 GMT). We expect growth of investor activity today and maintain the medium-term positive outlook.
European stock indexes are now consolidating around the previous close after offset losses of the previous days. The French market is under the pressure from the threat of new terrorist attacks in the country. Furthermore, airlines stock are reduced in Europe. Tomorrow, the volatility on the markets may rise after data on balance of payments of euro area and retail sales and factory orders in the UK and the speech of Mario Draghi. We keep medium-term positive outlook for the stock markets in Europe, but do not exclude the fall in the near future.
Markets in the Asia-Pacific region did not show uniform dynamics. Most stock indexes fell under the influence of weak statistics from the US and expectations of the negative impact of the Fed raising interest rates on the global economy. The Japanese market is supported by the devaluation of the yen against the US dollar. Tomorrow we should pay attention to the statement by the Bank of Japan on monetary policy, as well as statistics on the trade balance and the index of business activity in Japan. In the near future, the growth of quotations in the region can continue, but the risks associated with slowing growth in China, continue to put pressure on share prices.