01.07.2014 - Industrial production growth in China and Japan accelerates

American indexes remained virtually unchanged yesterday at the contradictory statistics, which on the one hand pointed to a decline in June index of Chicago manufacturing PMI to 62.6, against the forecast of 63.2. On the other hand the number of pending sales on the secondary housing market rose in May by 6.1%, with an expected growth by 1.4%. Today the course of trading will be affected by the news U.S. manufacturing PMI and construction spending (14:00 GMT). Investors do not hurry to accumulate positions before the release of data on the labor market in America (Thursday). We maintain a medium-term negative outlook for the U.S. stock market.

Trading session in Europe ended with mixed dynamics of major markets. Thus, the German market has grown despite the drop in retail sales in Germany in May by 0.6% compared with an expected growth by 0.8%. The level of consumer price inflation in the euro area remained at 0.5%, while lending to individuals in UK rose to 2.7 billion in May, which is 0.3 billion more than in April. Today, the course of trading will depend on the data on manufacturing PMI of the Eurozone (08:00 GMT) and the UK (8:30 GMT), as well as statistics on unemployment in the Eurozone (09:00 GMT). We maintain our medium-term negative outlook for the European market.

Trading session on the markets of Asia-Pacific ended with the growth of the Japanese market amid weakening of the yen and data on the growth manufacturing PMI of the country in June to 51.5, which is 0.4 better than the previous figure. The same indicator in China increased by 0.2 to 51.00, indicating the acceleration of growth in industry. The Australian market is falling, despite the fact that the Reserve Bank of Australia has kept interest rates at the current level of 2.50%. We maintain our negative outlook for the Australian and Chinese market and we expect continued growth of Japanese equities.

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