22.08.2014 - Investors are waiting for the statement of Janet Yellen
Major American stock indexes showed a slight increase on the background of data on the growth of existing home sales to 5.15 million homes in July that is 140,000 better than the expected figure. The index of leading economic indicators, of the United States grew in July by 0.9% vs. expected 0.6%. Today is not expected the release of important macro and investors will be focused on the speech of the Fed Chairman Janet Yellen at the annual symposium in Jackson Hole (14:00 GMT). Traders expect that Mrs. Yellen will announce the parameters of the future monetary policy of the Fed. We maintain a medium-term negative outlook, and anticipate the correction on the stock markets of the USA in the near future.
European stocks continued to rise on the background of weak economic data, which increases the possibility of a rapid launch of stimulus measures by the ECB. So, the Eurozone service PMI fell to 53.5, compared with an expected 53.6, while the manufacturing PMI declined to 50.8, which is 0.6 worse than the forecast. Besides the consumer confidence index in the Eurozone in August fell by 2 points to -10. Today at 14:30 GMT will be held the speech of the ECB President Mario Draghi, which may influence the course of trading. Further movement of the market will depend on investor sentiment in America. We maintain a medium-term negative outlook for European stock indexes.
Markets in the Asia-Pacific region have shown low volatility. Investors do not want to build up positions ahead of the speech of the Fed, in which Janet Yellen can make a number of important statements on the monetary policy of the Fed. The Australian market has been supported by the strong corporate reporting of companies of the mining and oil sectors. The Chinese market rose slightly following the American indexes, and in Japan market corrected after yesterday's growth. We maintain a medium-term negative outlook on most stock markets in the region.