26.08.2016 - We expect strong movements after the speech of Janet Yellen

American stock indexes showed a decline yesterday on the statements of the chief of Federal Reserve Bank of Kansas Esther George, on the need for a gradual normalization of monetary policy in the country. Positive statistics on the growth in the volume of orders for durable goods in the US by 4.4% in July, which is 1.0% more than the forecast of analysts, could not lead to an increase in the indices. Today, we expect increased volatility due to the anticipation of head of the Federal Reserve chairwoman Janet Yellen at a symposium in Jackson Hole (14:00 GMT). Hints on a rise in interest rates this year will lead to a drop on the markets. Also today, will be published important news for GDP growth in the second quarter (12:30 GMT) and the index of consumer confidence in the US (14:00 GMT). We expect the beginning of a strong decline in the near future and maintain the medium-term negative outlook.

European stocks today show decline amid fears of hawkish rhetoric by head Janet Yellen during a speech in Jackson Hole. It is worth noting that we do not see the driver which can lead to continued growth of indices in Europe and expectation of the UK’s exit from the EU will continue to put pressure on investor sentiment. Today, have been published data on the index of consumer confidence in Germany from Gfk, which rose in September to 10.2, against 10.0 previously. Volatility today will grow and we expect a decline of the region's markets in the near future and medium term.

Markets in the Asia-Pacific region today, are moving in different directions. Optimism in China, is supported by expectations of support for the country's economy by the authorities. On the other hand, the Japanese market fell following reduction on the US stock markets. Core inflation in Japan was 0.5% in July against the forecast of -0.4%. We expect a strong movement in the stock markets in the region on Monday in connection with the revaluation of portfolios after today's speech of the Fed. Our medium-term outlook remains negative.

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