25.09.2015 - Fed chief expects rise in interest rates before the end of the year

Major US indexes showed yesterday decline amid negative corporate news and weak statistics on the volume of orders for durable goods. Thus, the index in August fell by 2.0%, against growth of 2.2% in July. At the same time, this was partially offset by the negative statistics on sales of new homes in the US, the number of which has grown to 552 thousand, compared with an expected 516 thousand. It should be noted that the head of the Federal Reserve yesterday stated, that expects the Fed raising interest rates before the end of the year. Today, the mood of investors will depend on the final report on the growth of the US economy in the second quarter (12:30 GMT), and the index of consumer confidence in the US (14:00 GMT). We maintain a positive medium-term outlook for US indexes and predict growth today.

S&P 500 Technical Outlook

Major stock indexes in Europe today show strong growth after yesterday's decline caused by speculation regarding the discrepancy of environmental standards in one of the models of BMW, there is no evidence of this fact. Today, the growth in the market was due to a general improvement in investor sentiment after the speech of Janet Yellen relatively limited impact of volatility on the markets of China on policy of the Fed and the US economy. We expect growth on the markets of the region in the medium term.

Markets in the Asia-Pacific region showed different dynamics. Thus, the main reason for the growth of the Japanese market is the decline of the Japanese yen against the US dollar after the statement of the head of the Fed on likely raising US interest rates by year's end. At the same time, core consumer price index in Japan was 0.1%, which coincided with forecasts of analysts. Chinese indexes continue to be under the pressure from weak statistics in the manufacturing sector. In addition, some traders regard the statement by the US authorities on the self-regulation of the stock market as a signal to reduce market support measures. We expect a high level of volatility in the near future, but after the stabilization of the situation, the rise is likely to continue.

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