01.04.2016 - The Japanese market showed a strong decline

US stock indexes finished the last trading session of the quarter near the previous close. It is worth noting that investors were afraid to build up positions ahead of today's publication of important labor market data in the US (12:30 GMT), as well as statistics on the manufacturing PMI, construction spending and consumer confidence in the US (14:00 GMT). After strong growth in March, as well as on the background of the beginning of the corporate reporting season on April 11, investors fear the correction on the US market. We expect the beginning of reduction in the near future, but the current growth inside the uptrend is likely to continue in the near future.

Major stock indexes in Europe began a new trading quarter, with a sharp decline amid weak statistics on business activity in Japan. In addition, investors have fixed positions before the release of important statistics on the US labor market. It is worth noting that the manufacturing PMI in the euro zone rose to 51.6, which is 0.2 more than the forecast. The comparable figure in the UK showed an increase to 51.0, which was 0.4 less than expectations. The main risk for European economies is a possible exit of Great Britain from the European Union. Our medium-term outlook remains positive, but in the near future we will probably see a correction on the European markets.

Major stock markets in the Asia-Pacific region showed different dynamics. Thus the strong fall showed Japanese stocks that was caused by weak data on the Tankan index of business activity of the largest manufacturers in Japan, which fell to 6 in the first quarter, which is 2 times less than in the previous period. This fact indicates the low efficiency prime minister Shinzo Abe’s policy. On the other hand manufacturing PMI in China and Australia, in March, showed an increase to 50.2 and 58.1, respectively, compared to 49.00 and 53.5 in February. In the near future the fall on the markets of the region can continue, but our medium-term outlook remains positive.

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