24.09.2014 - Market sentiment has worsened

The American market yesterday continued to fall due to the worsening of the conflict in Iraq and Syria, the weak data on the country's industry and higher taxes for companies with headquartered abroad. Thus, the manufacturing PMI was 57.9, compared with an expected increase to 58.1. Today, trade dynamics will depend on the statistics on new home sales in the USA (14:00 GMT). At the moment, the market has fewer drivers for future growth and we expect a significant correction on the American market the medium term.

European stocks showed a decline yesterday due to the tightening of tax rules in the United States, which has a negative impact on the companies in the pharmaceutical sector, which American companies will buy to reduce the tax burden. In addition, it is worth noting the fall of the Eurozone service PMI in September to 52.8, vs. expected 53.2 and manufacturing PMI to 50.5, versus the expected 50.6. Today, we look forward to continuing negative trend on the markets due to the negative mood of traders in the United States and Asia. Our medium-term outlook remains negative.

Markets in the Asia-Pacific region show mixed dynamics. A slight decrease is on the Japanese market, which is associated with a reduction in manufacturing PMI to 51.7, compared with an expected 52.5. The Australian market is under pressure of low iron ore prices, which reached its lowest level since September 2009 - $ 80 per ton. The Chinese market shows no single trend in connection with on one hand providing 500 billion Yuan to support the economy and the crisis in the construction on the other. We maintain a medium-term negative outlook for the markets in the region.

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