22.08.2016 - Investors are waiting for new signals

American stock indexes continue to consolidate near historic highs. Investors are concerned about the statements of the presidents of the Federal Reserve Bank of New York and Atlanta rhetoric which is a hawkish. Tightening of monetary policy of the Fed traditionally is negatively displayed on the stock market. Today will not be published important statistics in America, but tomorrow we should pay attention to the data on new home sales, and on Friday will be released a preliminary report on the growth of US GDP in the second quarter. The central event of the week will be the speech of the Fed's head Janet Yellen on economic symposium in Jackson Hole. Our medium-term outlook for the American stock market remains negative and we look forward to the beginning of the correction in the near future.

European stock indexes started the trading week with optimism, despite the lack of important events in the region. The reasons for the growth were the technical factors and the desire of investors to fix positions ahead of Fed’s chairwoman speech on an important economic forum on Friday. Tomorrow we should pay attention to the statistics on service and manufacturing PMI in the Eurozone. According to our estimates, the growth potential on the European markets is low and in the coming weeks there is a possibility of the correction on the markets of the region.

Markets in the Asia-Pacific region showed little change against the background of expectations of new ideas on the market. Growth is constrained by fears of more hawkish rhetoric from the Fed chairman that appears negative on the stock markets of the region. Support for the Japanese market is the decline of the yen against the US dollar. Tomorrow we should pay attention to the statistics on the manufacturing PMI in Japan and the speech of the Bank of Japan Haruhiko Kuroda, which may lead to a weakening of the yen and the growth of the local market. Our medium-term outlook is negative and the correction can begin in the coming weeks.

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