Stock Markets: Stabilizing

Yesterday, participants of the markets finally calmed down, which helped indices to recover slightly from the falls of the last few days. Optimism was brought by macroeconomic statistical data which pleased investors. According to the published data, orders in the manufacturing industry were reduced in December by 1.5%, while analysts expected the fall of the indicator to be 1.7%.

Investors attention was also directed towards speeches from the representatives of the FED. In particular, the head of the FED of Richmond, Jeffrey Leker, noted that the American economy will continue its development, with a very slow rate, however, this will not affect decisions of the FED to continue to reduce the program. Accordingly to his estimates, gross domestic product of the country will grow in 2014 by 2%, and the rate of inflation in the next 1-2 years will reach the target level of 2%. At the same time, the head of the FED of Chicago, Charles Evans, declared that an increase of interest rate could be possible, but only in the long-term, and monetary policy will remain to be soft until the FED is sure that all necessary measures have been taken for achievement of maximum employment and price stability.

Following the results of the session, the Dow Jones Industrial Average index rose by 0.47% and was closed on a level of 15445.24 points. The index of the wide market S&P 500 went to plus by 0.76% to the level of 1755.2 points, and the index of the hi-tech companies, Nasdaq, increased by 0.87%, to a level of 4031.52 points.

Asian stock markets are recovering after a strong fall yesterday. The Japanese Nikkei adds 1.23%, the Korean KOSPI also grows. China is still celebrating New Year in the country. The Australian ASX200 and the Indian BSE Sensex are decreasing.

Today is going to be a very saturated day, statistical data wise. Indexes of business activity in the Eurozone, data of ADP Services on the labor market in the USA, and the ISM index in the non-manufacturing sector are expected.