19.11.2014 - The American market has updated the highs
The US stock market yesterday showed a steady growth on the background of increasing demand for healthcare companies and small-cap companies. The producer price index in the US rose by 0.2%, despite the expected decline of 0.1%. Today, we are forecasting an increase in volatility after the publication of the statistics on the housing market (13:30 GMT) and the minutes of the previous meeting of the Fed (19:00 GMT). We recall that the construction sector is crucial for the US economy and the improvement of its performance will lead to growth of indexes. Despite the current growth we forecast a substantial correction in the medium term.
European stocks rose yesterday after the publication of the statistics on the index of business confidence in Germany, which rose to 11.5 in November, compared with an expected 0.9, and the Eurozone, which showed an increase to 11.0, which is 5.7 better than the forecast of analysts . The consumer price index in the UK unexpectedly rose to 1.3% in October, although experts expect that figure will remain at 1.2%. Today the positive have become news on the growth of the Eurozone trade surplus to $ 30 billion in September, versus the expected 21.8 billion. In this regard, we are improving outlook on European stocks, but maintain a medium-term negative outlook.
Markets in the Asia-Pacific region today show a negative trend against the background of declining interest in Shanghai and Hong Kong markets link. Falling prices of Chinese real estate continues to put pressure on the country's stock market. In addition, Japanese investors fixed positions after the announcement of the dissolution of the lower house of parliament on November 21 and postponement of raising the sales tax to 18 months. The Bank of Japan left its policy settings unchanged, but raised its forecast for exports. Tomorrow is expected the increase of volatility after the publication of minutes of the previous meeting of the US Federal Reserve. We maintain a negative outlook on the Chinese and Australian market, but expect growth of indexes in Japan.