27.04.2016 - The statement of the Fed will lead to an increase in volatility
US stock indexes significantly changed over yesterday's trading session due to conflicting factors. Thus, the rise in oil prices supported the market, but the volume of orders for durable goods, which rose by 0.8% vs. expected 1.9% had a negative impact on the course of trading. Another negative factor was the data on the index of consumer confidence from the Conference Board, which fell to 94.2 in April against 95.8 expected. Today is forecasted increased volatility due to the Fed statement on monetary policy (18:00 GMT). Given the weak corporate reports of a number of companies including Apple, we expect a significant correction on the markets in the coming weeks.
European stocks are near previous closing levels due to the pending publication of the Fed’s statement on monetary policy at 18:00 GMT, which may lead to increased volatility on the world markets. It should be noted that the index of consumer confidence in Germany from Gfk rose to 9.7 in May against the forecast of 9.5. According to preliminary data, the UK’s GDP grew by 0.4% in Q1, in line with analysts' expectations. We expect increased activity of investors tomorrow, and in spite of the possible correction in the coming weeks, maintain a positive medium-term outlook for the markets of the region.
Markets in the Asia-Pacific region today showed a decline due to the fixation position before the statements of the central banks of the US and Japan. It is worth noting that the Bank of Japan probably will keep monetary policy settings unchanged, but may hint on reduction in credit interest rates at the next meeting. The mood of Australian investors was negatively impacted by the news on inflation in the country. Thus, the consumer price index in Q1 fell by 0.2% against the expected growth of 0.3%. Our medium-term outlook remains positive, but we may see a correction in the coming weeks.