24.11.2015 - Rising tensions in the Middle East worsened investor sentiment

American stock indexes ended yesterday's session near the previous close. The growth of indexes was restrained by weak data on manufacturing PMI, which in November fell to 52.6 vs. expected 54.0, as well as existing home sales, which fell to 5.36 million in October against 5.55 million the previous month. Today, investors’ sentiment deteriorated after the news about the plane downed by Turkish forces near the border of the country. The focus of investors today will be of the US GDP data for the third quarter (13:30 GMT) and the index of US consumer confidence from the Conference Board (15:00 GMT). Our medium-term outlook remains positive, but the decline may continue in the near future.

European stocks fell today after the publication of news on the downed by Turkish fighter military plane near the border of Turkey and Syria. Russia said about its downed plane, which has led to the sale of risky assets on the markets. It is worth noting that today was published the final statistics for GDP growth in Germany in the 3rd quarter, which totaled 0.3% compared with the second quarter, in line with expectations. At the same time, the index of business sentiment in Germany rose to 109.0, against the forecast of 108.3. Our medium-term outlook remains positive, but the decline may continue in the near future.

Markets in the Asia-Pacific region ended the day with little change. The Japanese market was maintained by the data on the manufacturing PMI in the country, which rose to 52.8 that is by 0.7 better than the forecast. Tomorrow we should pay attention to the publication of the minutes of the previous meeting of the Bank of Japan. In the near future the dynamics of trading will affect the news from the US. Volatility will be increased. The negative impact on investor sentiment will have a growing geopolitical tensions in the Middle East. Our medium-term outlook remains positive, despite a possible drop in the near future.

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