02, November 2015

Fundamental analysis

Fundamental analysis

Last Friday the United States did not please traders with the third quarter GDP positive data. The index showed 1.5%0 with the consensus forecast of 1.6%. The Government statistics have recorded a personal income growth, still the household spending has fallen. The negative dynamics also affected investments and net exports. Now, however, it is not necessary to perceive this report as pessimistically as investors "laid" in quotes the GDP growth slowdown.

We should carefully monitor the debt and commodity markets dynamics amid the lack of important macroeconomic statistics. The UK government bond yields have been growing for two trading days in a row in relation to their US and Germany competitors which increases the investments’ attractiveness in the British assets. The Brent crude oil can continue to decline at any time amid the world oversupply as well as the US desire to sell oil from the strategic reserve. The US reserves have 695.1 million barrels. The commodity quotations decrease has a positive impact on the dollar as the raw materials cost was denominated in the US dollars.

The Japanese 10-year government bond yields which reflect investors' inflationary expectations fell by 5 bp in September. Consumer spending is increasing amid the average wage growth; however, the current growth is not high enough to talk about the inflationary pressures increase. The low energy prices remain a major threat to the price stability.