22.09.2014 - News from China worsened the mood of investors
American stock indexes finished the last trading day of the week with mixed dynamics. Thus, the markets were supported by IPO of Alibaba, which was a record in terms of funds raised on the American market. Furthermore on Friday have been published data on the index of leading economic indicators which showed growth of only 0.2% in August against growth of 1.1% in July. Today, market sentiment has deteriorated in relation to the statement of the Chinese authorities about that the Ministry of Finance does not plan to change policy because of the deteriorating economic situation in the country. Today we should pay attention to the data on the secondary housing market in the United States (14:00 GMT). We maintain a medium-term negative outlook on the American market.
European stocks reacted positively to the results of the vote on the independence of Scotland, where more than 55% of voters were in favor of the preservation of the country as a part of the United Kingdom. Data for the euro area balance of payments also cheered investors. Thus, the rate in July rose to 0.1 billion, to 18.7 billion. Today is likely a decline on the stock markets of Europe. Among the statistics we should pay attention to consumer confidence in the Eurozone (14:00 GMT), and at 13:00 Mario Draghi will make a speech. We maintain a medium-term negative outlook for European markets.
Indexes of the Asia-Pacific region have dropped significantly due to the statement of China's finance minister that the government does not intend to make significant changes to current policies and take resolute steps regarding the deteriorating situation in the industry in China. The Japanese market is down against the strengthening of the Japanese yen against the dollar. Tomorrow in Japan is a banking holiday. Australian investors continue to suffer from low prices for export commodities such as iron ore, gold and other commodities. We expect the fall on the stock markets in the region in the medium term.