27.07.2016 - The statement of the Fed can strongly influence the course of trading
American stock indexes continued to consolidate near historic highs in anticipation of today's publication of the Fed's statement on monetary policy (18:00 GMT). We expect the monetary policy parameters unchanged, but do not rule out the hints from the Fed regarding the plans for raising interest rates this year, which will be negatively displayed on stock indexes. The focus of investors remains as the corporate reporting season. Today is also worth paying attention to the volume of orders for data on durable goods (12:30 GMT). Our medium-term outlook remains negative and we expect a rise in volatility today.
European stock markets showed gains today against the background of positive corporate reports. Support for the market was the news for GDP growth in the UK by 0.6% in the second quarter against 0.5% expected and the previous value of 0.4%. Tomorrow dynamics of trading will depend on today's statement by the Federal Reserve on monetary policy as well as labor market statistics from Germany and Spain. Volatility in the equity markets is likely to remain high, but the pressure from the expected consequences of the UK’s exit from the EU, will continue to put pressure on local indices.
Markets in the Asia-Pacific region generally rose today. Investors are waiting for the outcome of the Fed meetings and the Bank of Japan. The decline of the yen against the dollar was a strong incentive for the Japanese market. It should be noted that the Prime Minister of Japan Shinzo Abe said that the stimulus package will total more than 28 trillion yen, it will support the growth in the domestic market and increase optimism in the region. Strong market movements are possible in the near future in connection with the publication of statistics on household spending, inflation and industrial production in Japan. Our medium-term outlook remains negative.