27.10.2015 - The UK economy grew less than expected
US stock indexes finished yesterday's trading session with little change. The growth of indexes has stopped due to the expectation of the most important events this week, among which we should highlight the Fed's statement on monetary policy, which will be released on Wednesday, and the publication of preliminary data on US GDP growth in the third quarter, which will be held on Thursday. Yesterday, investors were upset by the news on weak growth in sales of new homes, which fell to 468 thousand vs. expected 546 thousand. Today, a strong influence on the mood of traders will have data on the volume of durable goods orders in the US (12:30 GMT). In addition, we should pay attention to the statistics on the US consumer confidence index from the Conference Board (14:00 GMT). We expect growth on the markets of America in the medium term and the increased volatility in the near future.
European stocks stabilized after the strong growth last week, caused by the positive statements of the ECB, according to which in December European regulator can start using additional tools to stimulate the growth of inflation in the euro area. Despite this, the British investors today were disappointed by data on UK GDP growth for the third quarter of this year, which totaled 0.5% against the forecast of growth of 0.6% and the previous figure of 0.7%. Compared with the same period last year, an increase of 2.3%, which was the minimum value in two years. Our medium-term outlook for European markets remains positive, despite some uncertainty of investors.
Markets in the Asia-Pacific region now are under the pressure of strengthening yen against the US dollar, which has led to decline of shares in export companies. Investors will fix positions before important events this week, among which we should highlight the statements of the Fed on Wednesday and the Bank of Japan on Friday, as well as the publication of preliminary data on US GDP growth for the third quarter. Tomorrow we should pay attention to the statistics on retail sales in Japan and the consumer price index in Australia. Our medium-term outlook for the stock markets in the region remains positive and we expect strong movements during the week.