31.08.2015 - The situation in China is in the focus of investors
The American stock market showed no significant change in the index during the last trading session of the week due to investors' desire not to open new positions. It is worth noting that earlier US stock indexes showed a correction after a strong decline during the previous two weeks. Today, the dynamics of trading will be affected by the assessment of statements made by the Fed at the economic symposium in Jackson Hole, according to which the crisis in China has a limited impact on the Fed's decision regarding the monetary policy of the US regulator. Today, we should pay attention to the statistics on the Chicago PMI (13:45 GMT). The central event of the week will be the publication of data on the labor market in the USA for August. Our medium-term outlook for the US stock market is positive.
Major stock markets in Europe show a negative trend in the first trading day of the week. The trading session is closed in the UK in connection with the holiday. Investors still fear the worsening of the situation on the stock market in China and the deterioration of macroeconomic indicators in the second largest world economy. Statistics on the growth of retail sales in Germany by 1.4% in July, and the preservation of the consumer price index in the euro area by 0.2% failed to improve the mood of traders. Investors are waiting for the press conference of the ECB chairman on Thursday and tomorrow's statistics for the manufacturing sector of the Eurozone and China. Our medium-term outlook for the market is positive, but in the near future we can see the index fall.
Most stock indexes of Asia-Pacific region showed a negative trend in the beginning of the week against the backdrop of concerns about the preservation of the possibility of further fall on the Chinese stock market. At the same time the weak statistics on industrial production in Japan, is contributed to the fall of stock indexes of the country. Thus, the index fell in July by 0.6%, against an expected growth by 0.1%. Tomorrow, the dynamics will depend on the publication of important statistics on manufacturing PMI of Australia, China and Japan. In addition, the Australian stock markets will be affected by RBA statement. We expect high volatility in the markets of the region in the near future.