18.12.2014 - Fed statement improved the mood on the stock markets

The US stock market yesterday showed strong growth against a background of increasing the value of shares in the energy sector, as well as due to the Fed's statement according to which next year is expected the increase of interest rates. Tightening of monetary policy, together with the weak data on growth in China, Europe and Japan continue to put pressure on the stock markets. At the moment, indexes are growing and can reach the levels of historic highs, but they will need to overcome a significant boost. We maintain our medium-term negative outlook on the US indexes.

European stock markets yesterday showed restrained dynamics and closed in different directions. Investors did not hurry with actions before the Fed statement on monetary policy. The consumer price index in the euro area in November remained at 0.3%. UK data did not lead to an increase in the index, despite the reduction in unemployment to 26.9 thousand and average wage growth in October by 1.4%, which is 0.1% better than analysts' expectations. Today, investor sentiment on the market has improved due to the positive with the United States. In addition, the index of business confidence in Germany rose in December to 105.5, against 104.7 in November. UK retail sales unexpectedly rose by 1.6%, that was significantly better than expected growth of 0.3%. We expect growth on the markets in the coming days, but after Christmas fall can resume.

Markets in the Asia-Pacific region showed an upward trend amid rising US stock markets. Japanese indexes were supported by the devaluation of the yen against the US dollar after the Fed announced that it will not raise interest rates in the coming months, but is likely to raise it this year. Tomorrow the course of trading will be affected by the statistics on the index of business activity in Japan and the statement of the Bank of Japan on monetary policy. Despite the current growth, indicators in China and Japan deteriorated, which gives reason to expect a decrease on the stock markets of the region in the medium term.

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