The US stock market yesterday rose sharply due to the expectations of today's statements by the US Federal Reserve, as well as in connection with the publication of positive statistics on consumer confidence in the US, which in October rose to 94.5, compared with an expected 87.4. At the same time, the volume of durable goods orders fell in September by 1.3%, against 0.4%. It is worth noting the massive closing of short positions, which contributed to the growth. Today, we expect an increase in volatility after Fed statement (18:00 GMT). Despite the current growth on the market, we maintain a medium-term negative outlook.
European stocks rose yesterday on the background of corporate reporting, the results of stress tests that despite problems in 25 banks showed the ability of the banking system deal with the financial crisis. Buyers also were supported by positive US data. Today traders will be watching the news from the US Federal Reserve meeting, and tomorrow it is worth paying attention to the data on the labor market in Germany and GDP growth in the US and Spain. We maintain a medium-term negative outlook for European markets.
Markets in the Asia-Pacific region continued to rise after the improvement in investor sentiment in the US and against the closure of short positions. It is worth noting the positive impact of data on industrial growth in Japan at 2.7% against a decline of 1.9% in August. Rising volatility is expected on Friday after statements of the Bank of Japan and the macro-statistics on the labor market and inflation in Japan. Considering slowdown in growth and the problems in the construction sector in China, we maintain a medium-term negative outlook on the stock markets in the region.