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    Nasdaq Composite: negative dynamics continues. Fundamental analysis as of 16/06/2016.

    As became known, on Wednesday, at the close of two-day meeting, the US Fed left monetary policy unchanged. It was unanimously decided to leave interest rate in the range of 0.25%-0.5%.

    In the following up comments the head of the US fed, Mrs. Janet Yellen expressed concern about forthcoming referendum of the UK membership in the EU. Steady but slow economic growth and low rate of inflation in the USA enforce the Fed to be very careful about the issue of the interest rate. Mrs. Yellen also said that the Central Bank has not determined future actions and changes in the rate in 2018 or later. Comments made by the US Fed evidence that the Bank plans to adhere to soft monetary policy.

    It seems that September is a month when interest rate increase may take place. Now, US Fed believes that economic growth this year will slow down. According to the new forecast, GDP growth in 2016 will amount to составит 2.0%, instead of 2.2%. Medium-term forecast of economic growth in 2017 was also downgraded to 2.0% from the level of 2.1% in March.

    Thus, turbulence in the financial markets, slower growth of GDP and the decrease in number of new jobs in the country, as well as the decrease in inflation expectations, uncertainty about the UK membership in the EU and the future of Eurozone and also slowdown of Chinese economy have increased concerns among the Fed’s executives. All these negative factors will have a strong impact on the US economy over a longer period of time than previously expected.

    At the end of yesterday’s trading day, the US stocks indices fell, closing the day in the negative zone.

    Thus, decline in stocks has continued for the fifth consecutive session.

    The index of Dow Jones Industrial Average declined by 0.2% to the level of 17640.17, S&P500 - by 0.2% to 2071,50, the Nasdaq Composite index fell down by 8.62 points, or 0.2% to the level of 4835.00.

    It is likely that the negative impact caused by the concerns about the future of the world and the US economy will for some time affect global and U.S. stock indexes, including the Nasdaq Composite, which has already fell against the growth in the previous month. Negative dynamics will continue so far.


    Nasdaq Composite: negative dynamics continues.  Fundamental analysis as of 16/06/2016.


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