30.09.2015 - Markets are growing within the correction

The situation on the US stock markets stabilized after a sharp fall in the beginning of the week. The drop leaders were the shares of mining companies, which is associated with problems in the Chinese economy. It is worth noting the positive statistics on the US consumer confidence index, which in September rose to 103.0 against 101.3 in August. Optimism lowered amid the weak data on the country's trade balance deficit which totaled 67.2 billion in August against the expected 57.3 billion. Today, we should pay attention to the speech of the President of the Federal Reserve Bank of New York, William Dudley (12:00 GMT), the head of the Fed Janet Yellen (19:00 GMT), as well as statistics on Chicago’s manufacturing PMI (13:45 GMT). Investors are waiting for a report on unemployment in the US, which will be released on Friday, and a major impact on investors' expectations regarding the timing of the Fed raising interest rates. We expect growth in the medium term.

Major stock indexes in Europe show an increase after falling earlier in the week, which was caused by concerns about the negative impact of the crisis in China on European markets. Support for the markets were the news about the fact that Volkswagen may escape punishment for manipulation of environmental tests in the United States. The unemployment rate in the euro area remained at 11.0%, which is 0.1% below the forecast, the consumer price index in September was 0.1%, which is 0.1% worse than expected. Business investment in the UK in the second quarter grew by only 1.6%, against analysts' forecast of 2.9%. Volatility on the markets will continue in the near future, and we expect the resumption of growth in the medium term.

Markets in the Asia-Pacific region showed strong growth today in connection with the fixing of positions after a strong drop in the previous days, which according to some experts have been unduly strong. Data on the decline in industrial production in Japan in August by 0.5% against the expected growth of 1.1% could not change the positive attitude on the market. Tomorrow, the dynamics in the region will be influenced by statistics on manufacturing PMI in Australia, China and Japan. Our medium-term outlook remains positive, but the period of high volatility on the markets will continue in the near future.

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