30.03.2016 - Dovish rhetoric of the Fed has led to the growth of stock indexes
US stock indexes showed gains after Fed chief made surprisingly used more dovish rhetoric on monetary policy in the country. The main message of Mrs. Yellen was that the uncertainty on the global economy makes reasonable the gradual rise in interest rates. Despite this, we expect a significant increase in inflation this year that will force the Fed for more actions, which will negatively displayed on the stock markets. It should be noted that the index of US consumer confidence index from the Conference Board in March rose to 96.2 vs. expected 93.9. Investors are waiting for the publication of important statistics on the labor market on Friday. Current growth may continue in the near future, but we expect a correction in the short term.
European stock indexes are now showing positive sentiment amid rising US indexes after the speech of the Fed. It is worth noting the general optimism on European stock markets due to improved macroeconomic indicators in the region, as well as the positive effect of the program of quantitative easing in the Eurozone. Tomorrow will be published important data on retail sales in Germany, the consumer price index in the euro area and the final report on GDP growth in the UK. We maintain our positive medium-term outlook for markets in the region.
Markets in the Asia-Pacific region finished trading in different directions. Thus, the Japanese market fell due to the strengthening of the yen against the US dollar, and also against the background of negative statistics on industrial production in the country, the volume of which fell by 6.2% in February against the forecast of decline by 5.8% and growth of 3.7 % in January. Positive corporate reporting of a number of companies in China supported optimism for the country's markets. Tomorrow we should pay attention to the statistics on new home sales in Australia and of new homes starts in Japan. We expect growth on the markets of the region in the medium term.