The CIF license of PFX Financial Professionals Ltd has been suspended by the Cyprus Securities and Exchange Commission until the 24th of December 2016. Please click here

01.06.2015 - ​Risks associated with Greece continue to grow

Major US stock indexes finished the last trading day of the week lower on the publication of statistics on reduction of the US GDP by 0.7% in the first quarter of this year. Analysts had forecasted a drop of 0.8%, while the previous estimate pointed to an increase of 0.2%. It is worth noting that analysts point to signs of accelerating economic growth in the second quarter and forecast an increase of about 2.0%. At the same time, the consumer confidence index in the US rose to 90.7, vs. expected 90.0. Chicago PMI unexpectedly fell in May to 46.2, against expected growth of 53.1. Today is expected the release of a report on personal income and consumer spending (12:30 GMT), the US manufacturing PMI and construction spending (14:00 GMT). We keep medium-term positive outlook, but there is a low potential for growth.

Major European stock indexes showed a fall on the last day of the week amid rising concerns over a default by Greece. Thus, in the period from 5 to 19 June, the country needs to pay 1.6 billion euros and analysts doubt the possibility of repayment of the debt and reaching an agreement on debt restructuring in Greece. IMF chief Christine Lagarde does not exclude a Greek exit from the Eurozone. Today, the dynamics will depend on the statistics on manufacturing PMI of the euro zone (08:00 GMT) and the UK (08:30 GMT). Our medium-term outlook for the market in the region remains positive due to the positive expectations for GDP growth in the euro area and the UK, as well as due to a program of quantitative easing in the Eurozone. Despite this, the Greek crisis is the main risk for further growth.

Major stock indexes in Asia and the Pacific show a different dynamics. Sentiments on the Chinese market have improved amid the news on the country's manufacturing PMI, which rose by 0.1 to 50.2. The comparable figure in Japan remained at the level of 50.9. The fall of the Japanese yen continues to support exporters quotes. The Australian market is down despite positive data on manufacturing PMI, which unexpectedly rose to 52.3 in May from 48.0 in April. This fact points to the resumption of growth in the sector. Stock indexes in the region will likely continue to rise in the medium term against the backdrop of stimulus measures from China and Japan.

calendar | Календарь

We would like to remind you that although trading of derivatives on margin may offer many benefits, it is important to note that it also carries a high level of risk. Please click here to read our full ‘Risk Disclosure’ and ‘Risk Disclosures for Financial Instruments & Investment Services’.

RISK WARNING: Trading of complex financial products, such as Stocks, Futures, Foreign Exchange ("Forex"), Contracts for Difference ("CFDs"), Indices, Options, or other financial derivatives, on "margin" carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading these markets, and seek advice from an independent financial advisor if you have any questions or doubts. Please carefully read our full "Risk Disclosure" and "Risk Disclosures for Financial Instruments & Investment Services". FXFINPRO Capital is the trading name of PFX Financial Professionals Limited, a limited liability company formed under the laws of Cyprus, registered with the Registrar of Companies in Nicosia, Cyprus, under nr. HE 237840 and regulated by the Cyprus Securities and Exchange Commission with license number 193/13.
The CIF license of PFX Financial Professionals Ltd has been suspended by the Cyprus Securities and Exchange Commission until the 24th of December 2016. Please click here