US stocks extended gains on Friday amid positive impact of the news from China, where the central bank lowered the reserve requirements for banks by 0.5% and reduced the interest rates by 0.25%. At the same time, support for the market was the strong quarterly reports from companies Alphabet, Procter & Gamble, Microsoft and Amazon. This week, investors will continue to monitor the corporate reporting season in the US and the rhetoric of the Fed on monetary policy in the US. Today, the course of trading will be affected by the data on new home sales in the US, which according to our forecasts will improve investor sentiment. We expect growth on the US market in the near future and in the medium term.
Major European stock markets are consolidating around the previous close on the background of investor caution before the release of important news this week, as well as due to technical factors. It is worth noting that the index of business sentiment in Germany totaled 108.2, which is 0.1 better than expected, but worse than the previous value of 0.3. Tomorrow will be published important statistics for GDP growth in the UK in the third quarter, and on Friday in the euro area will released reports on unemployment and consumer price index. Expectations of additional measures to stimulate the economy of the Eurozone, after the ECB meeting in December will support the demand for the shares of European companies. We expect an increase in European indexes in the medium term and in the near future.
Markets in the Asia-Pacific region have stabilized after rising last week, which was caused by a general improvement in investor sentiment, as well as a decrease in interest rates of the PBOC by 0.25% to 4.60% on loans and 1.50% on deposits. Chinese regulator also lowered the reserve requirements by 0.50%. Investors are waiting for the statements of the Bank of Japan on Friday, during which can be announced additional measures to stimulate the economy, which will also lead to an increase in indexes in the region. Our medium-term outlook for the market in the region remains positive despite the slowdown of the Chinese economy.