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    World stock indices are still shaken up

    World stock indices are still shaken up
    Yesterday the market faced the second (though slight) wave of panic. Chinese statistics set the tone, showing that the economy is still cooling. It provoked new sales in stock and raw markets at Asian session. Almost the whole day passed under this pressure. Risk avoidance created favorable background for the common currency, which succeeded to close the day above 1.1300. Economic statistics of the day facilitated such moods. Production PMI of the Eurozone was revised downward, French one looked especially weak, US production ISM and British production PMI were also below forecasts. Currencies’ behavior in the market was like Brownian motion. Growth of euro and yen was caused by risk avoidance, pound fell on weak PMI, trade currencies decreased due to fall in raw prices (though Canadian dollar got temporary support from good data on GDP, still, it failed to retain it). So, this mess is going on. In this morning Asian platforms have opened in calmer tone. Chinese and Japanese stock indices are trying to grow. The common currency fell below 1.1300 immediately. Weak Australian GDP provoked fall of Australian currency to new six-year minimums, still, against the background of relative lull in stock exchanges this movement wasn’t developed. There are no signs that today behavior of the exchange market will change. Speaking of today’s events, American statistics are of most interest – ADP report on employment in private sector, industrial orders, NY ISM, and Beige Book. Under current conditions, it is difficult to presume how it will influence dollar. There are signs of improved macroeconomic statistics in the U.S.A., what is positive for dollar. Still, the threat of increase in rates by the Fed provokes turbulence in stock and raw markets, what makes the exchange market move multidirectional. 
     
    Trade tactics:
    Under current conditions, we prefer not to give recommendations. We are waiting out of the market. 
     
     Any opinions, advice, news, research, analyses, prices or any other information presented on this webpage is provided as general market commentary and does not constitute investment advice. "Vector Securities" shall not be liable for any loss, including loss of profit, which may arise directly or indirectly from the use of this information. 

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