21.04.2015 - China stimulates economic growth in the country
The US stock market showed a positive trend against the decision of the People's Bank of China on the reduction of reserve requirements for banks by 100 basis points to 18.5%, which should lead to an increase in liquidity in the market and increase lending in the country. Today, in the US is not expected the publication of important statistics and index will likely continue to consolidate close to historic highs. The course of trading will be affected by the results of corporate reporting. We do not see strong incentives that may lead to overcoming the levels of historic highs. Our medium-term outlook remains positive, but the price correction may begin in the near future.
European stock markets showed strong growth after a sharp decline at the end of last week and has offset the past fall. Statistics released today was inconsistent. On the one hand the index of business sentiment in Germany fell to 53.3, compared with an expected increase to 55.6, while the same indicator in the euro area rose to 64.8 against the expected increase to 63.7. Investors' attention is still focused on negotiation process to restructure Greek debt, the failure of which could lead to a sharp fall in European stock indexes. Our medium-term outlook remains positive due to the program of quantitative easing and improving macroeconomic indicators in the region.
Markets in the Asia-Pacific region showed an increase due to the actions of the People's Bank of China, which has lowered the reserve ratio for banks by 1.0% to 18.5%. Money that will be released through this step will increase the liquidity and lead to increased lending in the country. The weakening of the yen improved investor sentiment in Japan. Tomorrow will be published statistics on the trade balance of Japan and the index of leading economic indicators in Australia and China. Our medium-term outlook for the markets of the region remains positive and we expect continued growth of indexes.