19.01.2016 - Markets are growing within the correction
Futures for US stock indexes rose today following the increase in oil prices and concerns about the decline in the Chinese economy, despite the publication of the report of weak GDP growth and industrial production in the country. Yesterday, in the US was a day off and today will not be published important macroeconomic data. Investors are waiting for the publication of the report on inflation in the US tomorrow, which strongly affect the investors' expectations about the probability of the Fed raising interest rates in March. We expect the fall on the US stock markets in the coming months, but the current correction may continue in the coming days.
European stocks today show a positive trend against the background of investors' optimism in Asia despite the worsening statistics on industrial production and GDP growth in China. Today in the UK was published statistics on inflation, according to which the core consumer price index in December rose by 1.4%, compared to the same period last year. The forecast was 0.2% less than this value. The comparable figure in the euro area remained at 0.9%. The index of business sentiment has worsened in the euro area in January to 22.7, against 33.9 in December. In the coming days, a rising correction may continue, but for the resumption of strong growth is needed an external positive.
Major stock markets in the Asia-Pacific region showed an increase today in spite of the statistics, which showed deterioration of macroeconomic indicators in China. Thus, GDP growth in the 4th quarter totaled 6.8%, which is 0.1% less than the previous period, the volume of industrial production in China grew by 5.9% in December against the same period last year, which is 0.3% less than November values. At the same time Prime Minister Li Keqiang stated about the positive changes in the economy, where the service sector has almost reached half of GDP. After a sharp fall earlier, we can see an upward correction due to lower concerns about the situation in China, but the tension on the market persists.