Moscow, July 31 — “News. Economy” Investors are preparing for the publication of the results of the fed meeting at 21:00 GMT. The US and China ended the talks and announced a new round for September. Also focus on the reports from Apple and GE.

U.S. stock futures growing up in the premarket after reporting to Apple. Investors expect the publication of the results of the fed meeting. On Tuesday, the key indices lost 0.1-0.3 percent. The immediate resistance for the S&P 500 close — 3030 points. Nearby support in case of a rollback can be 2950-2940 points.

Positive factors

The fed’s meeting. The results of the event will be published at 21:00 GMT, 21:30 GMT start of the press conference is Jerome Powell. Digital projections of the FOMC this time will not be presented. It is expected that the key rate will be lowered by 0.25 percentage points, up to 2-2. 25%. Approximately 20% probability that the rate will be reduced from 0.5 p. p. Donald trump urges the fed to take aggressive actions, but the fed admits defeat. In fact, a reduction of more than 1-2 times or immediately by 0.5 percentage points would indicate very poor condition of the economy. It is wiser to leave space for maneuver. However, there are risks that the conservative approach of the fed will disappoint market participants, provoking the fixation of the “fact”.

Reporting corporations. Apple (+4%) exceeded market expectations on profit and revenue. Revenue from the iPhone and the services segment was weaker than the consensus forecast of analysts. Sales in China dipped by 4.1% (yoy). However, the indicators of the direction of wearable devices was surprisingly strong.

General Electric (+3,5%) II quarter got adjusted earnings per share level of $0.17, while analysts had expected $0.12 each. The index declined compared to the same quarter of last year by 6%. The company raised its full-year forecast for adjusted earnings per share to $0,55-0,65 from the previous $0,5-0,6.

Meanwhile, the financial forecast AMD (-4%) disappointed market participants.


The US and China. The talks in Beijing ended prematurely. According to Xinhua news Agency, the delegation of the United States and China agreed to hold the next round of trade negotiations in September. The parties discussed the increase in purchases of agricultural products in the United States, and the U.S. side agreed to create favorable conditions for it. However, progress is not observed, and is a risk factor.

The slowdown in the global economy. Central macrorules weeks and months, the official data on the U.S. labor market in July, which will be published on Friday. According to the consensus of economists, non-farm payrolls could grow by 160 thousand 224 thousand in June. According to ADP, employment in the U.S. private sector in July increased by 156 thousand 112 thousand in June. On the basis of absolute values, the statistics on payrolls may be closer to expectations.

However, an important medium-term trends point data reports can significantly diverge. Meanwhile, the official index of business activity (PMI) of China in July gave locally benign, however, the overall situation is pessimistic. Manufacturing PMI increased from 49.4 to 49.7 points, remaining below the borderline level of 50 points. However, PMI in service sector fell to 53.7 vs 54.2 points.

The reporting season in General. According to FactSet research organization, the cumulative decrease in consolidated earnings per share (EPS) of the S&P 500 index is now expected at 2.6% (yoy). A week earlier, it was about the decrease of 1.9%. Revising forecasts for the second half in a negative direction.

The chart of the S&P 500 index ended Tuesday, the day timeframe

Oksana Kholodenko,

expert in international markets “BCS”

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