Weekly reviews

Markets slightly down as the caution prevails ahead of Fed decision

On Tuesday stock trading in the US closed with new historic highs update. Statistical data turned out to be positive- import prices decreased by 0.3%, as export prices by 0.1%. (DOW + 0.58%, SP 500 + 0.65%, NASDAQ + 0.95%) In its turn Europe gained on a large and generally positive bunch of statistic data (FTSE + 1,1%, DAX + 0,8%, CAC + 0,9%) Today the meeting of the American regulator continues, the caution is rising according to the market behavior.

Today European stocks rebounded from 11-month highs. Looks like the investors are staying out from the market, avoiding the risk before FED decision and press conference. New bunch of statistic is positive today as well though the data did not change the situation on the market, as it was ignored by the markets. Rate hike was expected for most of 2016, but the instability China, the shock on Brexit and presidential elections in the US, all together retained a decision. Nevertheless, today, the US central bank is expected to raise the cost of borrowing. After that, investors' attention will shift back to the new president of the United States, Donald Trump, who takes office next month. Trump has promised to carry out fiscal stimulus policies to ensure economic growth in the US.

Consumer prices index in France has not changed from the previous month, as analysts had forecast in November.

Producer Price Index (PPI) in Switzerland rose by 0.1%, compared to the previous month, while analysts expected a decline of -0.1% in November.

The consumer price index in Italy published unchanged from the previous month, while analysts expected a decline of -0.1% in November.

The average wage in the UK rose by 2.5%, with growth forecast at 2.3% in October.

UK unemployment rate remained unchanged at 4.8% in November.

The volume of industrial production of the euro zone, dropped to -0.1% in October, compared to the previous month, with growth forecast at 0.2%.

US indices futures traded neutral, having gone slightly into the red zone.

Previously, most of the stock markets of Asia closed in the green Asia repeated positive close in Europe and the United States.

In Japan Index of large non-manufacturing companies sentiment from Tankanv for the fourth quarter, released today remained unchanged at 18, while analysts had expected an increase to 19.

Index of large manufacturer’s sentiment from Tankan for the fourth quarter rose to 10 for three months, from 6 in the previous quarter.

The growth of the Tankan index, is likely to give Japan central bank reason to refrain from further easing of monetary policy. Tankan also shows that companies are cautious in their capital expenditure plans, the end of the fiscal year. (Nikkei + 0,02%, S P ASX 200 + 0,71% Shanghai -0,46%)