19.03.2015 - Fed Statement improved investor sentiment

Major US indexes showed strong growth against the backdrop of the Fed's statement on monetary policy. Thus, the Fed refused to promise to be patient on interest rates rise. At the same time, the rate will be increased only in case of movement of inflation towards the target level of 2.0%. Fed's forecasts of inflation and interest rates have been degraded, thereby reducing the likelihood of higher interest rates in June. Today the dynamics of trading will affect labor market data in the US (12:30 GMT). The level of volatility will decrease. We maintain a positive medium-term outlook for the US stock market.

January 27 of USD Performance

Major European stock indexes were yesterday near the previous close levels. Investors decided not to open new positions before the Fed statement. At the same time the British market showed strong growth due to increased growth forecast for the UK economy in 2015 and 2016. The new budget pleased investors. Analysts of the OECD posted forecast of UK GDP growth of 2.6% in 2015, while in the euro area GDP will grow by 1.4% in 2015 and 2.0% in 2016. The course of trading in the coming days may be affected by the news from the EU summit. In connection with the program of quantitative easing and improved forecasts for GDP growth in the EU countries, we maintain a positive medium-term outlook for the markets of the region.

Markets in the Asia-Pacific region showed an increase with the improvement in investor sentiment in the US after the Fed's statement on monetary policy. The exception was the Japanese stock market, where shares of export-oriented enterprises fell against the strengthening of the yen. The index of business activity in Japan in January rose by 1.9%, in line with forecasts of analysts. Tomorrow investor’s sentiment in the region will affected by the speech of the ol RBA and publication of the minutes of the previous meeting of the Bank of England. We maintain a positive medium-term outlook for the markets of the region.

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