29.09.2015 - Investor sentiment has deteriorated

US stock indexes showed a decline yesterday against the background of negative statistics from China according to which the profits of industrial enterprises in the country in August decreased by 8.8% per annum. At the same time, statements by representatives of the Fed increase the likelihood of the Fed raising interest rates this year. In this regard, special attention should be given to the report on the US labor market in September, which will be released on Friday. Today, investor sentiment will affect the data on the trade balance (12:30 GMT) and the index of US consumer confidence from the Conference Board (14:00 GMT). The fall is likely to continue in the coming days, but the medium-term positive outlook remains unchanged.

Major stock markets in Europe today are near the previous close levels. Yesterday markets have fallen due to negative news from China, as well as due to lower value of the shares of the German Volkswagen, whose securities are under pressure of "diesel scandal". Negative for the market remain the risks associated with the victory of the separatists in the elections in Catalonia, which puts pressure on the Spanish market. Support for the UK market was the news on the growth of the balance of retail sales in the country to 49, that is 20 better than expected. At the same time, the number of permits issued for mortgage lending in the UK has increased to 71 thousand, which is 1 thousand better than the forecast. Our medium-term outlook for the market in the region remains positive, but in the near future we may see a drop.

Markets in the Asia-Pacific region showed a strong decline following the US stock market. Besides this negative factor was the statistics on the decline in profits of industrial enterprises in China by 8.8% in August, which again underlines the deterioration of the situation in China. As a result, the demand for protective assets as the yen has increased, which was an additional incentive for reducing the Japanese market. The fall on the markets is likely to continue in the near future. Growth is possible only after the stabilization of the situation in China.

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