28.10.2015 - The rhetoric of the Fed will be in the focus of the markets
American stock indexes showed a slight decline yesterday ahead of today's publication of the Fed's statement on monetary policy (18:00 GMT), after the meeting of the Federal Open Markets Committee. Investors do not predict the increase in interest rates at this meeting, but do not exclude this step in December. Yesterday, investors were disappointed by statistics on the volume of durable goods orders, which fell by 1.2% against the expected 1.1%. Tomorrow, investors' activity will also be raised in connection with the release of preliminary data on US GDP growth for the third quarter. Our medium-term outlook on the US markets remains optimistic.
European stocks showed moderate growth before the publication of the Fed's statement on the monetary policy. Yesterday's statistics for GDP growth in the UK, which grew by only 0.5% in the third quarter against the expected growth of 0.7% did not lead to a sharp fall on the UK’s market in connection with the forecast of strong growth in the construction after the recent decline in the sector. Investors did not rush to open new positions before the publication of the Fed statement and release of important macroeconomic data from the Eurozone on Friday. We expect growth on the European markets in connection with the possible launch of additional stimulus from the ECB.
The main markets of the Asia-Pacific region show different dynamics. Weak statistics on consumer price inflation in Australia, which totaled only 0.5% in the third quarter, which is 0.2% worse than expected, has led to an increase in the probability of easing monetary policy of the Reserve Bank of Australia. Tomorrow, the dynamics of trading on the Japanese market will be influenced by the movement of the yen and the statistics on industrial production in Japan. Investors are waiting for the important statements of the Bank of Japan on Friday at which may tell about new measures to stimulate the economy. We maintain a positive view on the medium-term growth prospects of the stock markets in the region.