31.10.2014 - ​Statement of the Bank of Japan has led to the wave of purchases on the Japanese market

The American market has reached historic highs. Central news yesterday was the data on US GDP growth in Q3 by 3.5%, which is 0.4% better than analysts' expectations. It is worth noting that the rate of export growth slowed to 7.8% against 11.1% in the previous period. Also it is worth noting the increase in the number of applications for unemployment benefits in the US to 287 million, which is 10 more than the forecast. Today trading dynamics will depend on the data on personal income and consumer spending (12:30 GMT) manufacturing PMI of Chicago (13:45 GMT) and the index of consumer confidence in the US (13:55 GMT). Further growth can be caused by positive corporate reports of US companies, but despite this we maintain a medium-term negative outlook on the US stock market.

September 11, 2014 USSPX Graph

European stock markets showed a slight increase yesterday in connection with the positive data from Germany, where the number of unemployed fell by 22 thousand, against the forecast of growth on 4000, and the unemployment rate remained at 6.7%. Positive for investors have also become data on US GDP growth by 3.5%, which exceeded the expectations of investors. Today, investors were disappointed by the data reduction of retail sales in Germany by 3.2% in September against the expected drop of 0.8%. Consumer spending in France fell in August by 0.8%, which indicates the growth of problems with consumption. Today is also worth paying attention to the unemployment rate and the consumer price index. Despite the growth of markets in recent times, we maintain a medium-term negative outlook.

Markets in the Asia-Pacific region rose significantly on positive sentiment of US investors after the publication of data on US GDP growth in the third quarter. The largest increase showed the Japanese market, which rose by almost 5% after the unexpected statement of the Bank of Japan on raising the volume of purchases of government bonds to 80 trillion yen a year, which should stimulate inflation and has led to the fall of the yen to pre-crisis levels. Chinese and Australian markets followed the global positive trend. On Monday trading dynamics will depend on the statistics on the manufacturing PMI in China and Australia. We maintain a medium-term negative outlook on the market in the region with the exception of the Japanese.

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