22.03.2016 - Explosions in Brussels has led to a drop in European indexes

US stock indexes continued to consolidate and finished yesterday's trading with a slight drop in prices. It is worth noting that today, the dynamics of trading can affect the data on the manufacturing PMI from the company Markit (13:45 GMT). The main event of the week will be the release of the final report on the growth of US GDP on Friday. Fed officials yesterday indicated the probable acceleration of US economic growth in the first quarter of this year, which may lead to the Fed raising interest rates in the early summer. The probability of correction on the US stock markets has increased significantly and we expect a fall in the near future.

European stock indexes are falling due to explosions in the metro and the airport of Brussels. Such events have traditionally had a short-term negative effect on the stock markets. Manufacturing and services PMI in the euro area showed an increase to 51.4 and 54.0 respectively. The index of sentiment in the business circles of the euro area fell in March to 10.6, against 13.6 in February. Consumer price inflation in the UK remained at 0.3% in February. We expect growth on the European stock markets in the medium term despite the risks associated with possible exit of Great Britain from the European Union.

Markets in the Asia-Pacific region finished the trading session with mixed dynamics. Chinese investors are expecting new signals, but in general the situation on the markets of the country has become more calm, which increases optimism about growth prospects in the near future and medium term. The Japanese market rose today amid the weakening of the yen, the strengthening of which was one of the main reasons for the decrease in prices in recent months. It is worth noting that today was published weak data on the manufacturing PMI, which fell to 49.1 in March against the forecast of growth to 50.6. A value below 50.0 indicates contraction in the sector. We expect growth in the stock markets of the region in the medium term, but we can see a decrease in the short term.

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