23.10.2015 - The mood of investors on the market has improved significantly
The US stock market showed strong growth against a background of strong quarterly reports of McDonald's the shares of which were up more than 7%. At the same time, support for the market was the news on the number of initial unemployment claims in the United States, which totaled 259 thousand, compared with an expected 266 thousand. At the same time, sales on the secondary market rose to 5.55 million vs. expected 5.38 million. The main positive factor for the market was the increase in the probability of additional stimulus measures in the euro area by the ECB. Investors will continue to monitor the corporate reporting season in the US. We anticipate continued growth of the US indexes in the near future.
European stock markets yesterday showed strong growth after ECB President Mario Draghi has hinted at revising the parameters of stimulus measures in the eurozone to fight the deflationary risks. The main reasons that negatively impact inflation in the region are the drop in energy prices, weaker demand on foreign markets and the strengthening of the euro against the US dollar. In addition, retail sales in the UK rose by 1.9% in September against the expected growth of 0.3%. Today, the support for the bulls on the market was a report on the manufacturing and service PMI in the euro area, which rose in October to 52.0 and 54.2 vs. expected 51.8 and 53.6, respectively. Our medium-term outlook remains positive, and we expect further growth on the markets in the near future.
Major stock indexes Asia-Pacific region today showed an increase due to the positive mood of investors in the US and Europe. Additional stimulation for the rise of inflation in the euro area will strengthen the demand for Asian goods, which is positive for the markets in the region. Moreover, a positive factor today was the news on the growth of Japan's manufacturing PMI to 52.5 in October against the forecast of 50.6. Our medium-term outlook for the market in the region remains positive, but volatility will remain elevated due to the uncertain situation surrounding the Chinese market.