30.09.2014 - Protests in Hong Kong worsened the mood of investors
US stock indexes ended the trading session again with decline due to weak data on the housing market, where the number of pending home sales fell by 1.0% in August, against growth of 3.2% in the previous period. Personal income and consumer spending rose by 0.3% and 0.5%, respectively which agreed with analysts' forecasts. At the same time, it is worth noting the negative impact of pro-democracy protests in Hong Kong, where demonstrators blocked the business areas of the city in connection with China's policy oт democratic freedom of the city. Today we should pay attention to the manufacturing Chicago PMI (13:45 GMT) and the index of consumer confidence in the United States (14:00 GMT). We maintain a medium-term negative outlook on the American market.
Major European stock indexes finished yesterday's trading session with little drop due to negative from Hong Kong, as well as weak data on the housing market in the UK, where the number of permits for the mortgage lending fell to 64 million, which is 2 thousand less than the forecast. Today, the central news of the day will be the publication of statistics on consumer prices and unemployment in the Eurozone (09:00 GMT). Despite this, investors will not rush to accumulate positions prior to the statement of the ECB on monetary policy and labor market statistics in the United States on Friday. We predict the fall of European indexes in the medium term.
Markets in the Asia-Pacific region are under the pressure of pro-democracy protests, of demonstrators in Hong Kong. Chinese investors fear the political crisis in connection with the events in Hong Kong. The Japanese market was down today due to a sharp fall in share automotive giant Toyota. Large block of statistics in Japan was controversial. Thus, decline in unemployment to 0.3%, 3.5%, was offset by the message of the fall in industrial production in the country in August by 1.5%, compared with an expected growth of 0.2%. The Australian market was supported by the growth of banking sector shares, but lower iron ore prices continue to put pressure on the national index. We maintain a medium-term negative outlook on the stock indexes in the region except for the Japanese.