26.07.2016 - Traders expect strong movements on the markets

US stock markets continued consolidation in anticipation of a number of important events this week, as well as on the background of continuing corporate reporting season in the country. The main focus of traders will be on tomorrow's Fed statement on monetary policy, and despite the likely saving of monetary policy settings unchanged, special attention should be paid to the rhetoric of the Fed. Today, the dynamics of trading can be strongly affected by the news on new home sales in the US and consumer confidence index from the Conference Board (14:00 GMT). Our medium-term outlook remains negative and we look forward to the resumption of the negative dynamics in the near future.

European stock indexes today are near the previous close levels in anticipation of important news from the US and Asia this week. It is worth noting the positive influence of the statistics on the index of business sentiment in Germany, which in July remained at a high level and totaled 108.3, despite the negative influence of the outcome of the British referendum. Tomorrow we should pay attention to the statistics on the index of consumer confidence in Germany from Gfk and statistics for GDP growth and retail sales in the UK. Our medium-term outlook remains negative on the background of the expected consequences of the UK exit from the EU.

Markets in the Asia-Pacific region showed mixed dynamics. The Chinese market has grown, but the Japanese assets fell on the yen strengthening against the dollar and news according to which the stimulus program totaled 6 trillion yen against the forecast of 10 billion yen and will be financed through the supplementary budget, rather than by the Bank of Japan. Markets are waiting for news from the US, as well as block the important macroeconomic data from Japan, which will be published on Friday, as well as the statement of the Bank of Japan on monetary policy. The probability of decline in the region's markets remains high and volatility in the coming days will grow.

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