03.05.2016 - The Australian market was supported by the reduction of interest rates of the RBA
American stock indexes yesterday showed growth against the background of correction after the recent strong decline. Investor sentiment slightly improved amid reports of US corporations. Among the statistics should be noted the publication of the manufacturing PMI report in the United States, which fell to 50.8, against the forecast of 51.6. The pressure on the mood of investors has a drop of oil due to increased production volumes in the OPEC countries to the highest level since 1989. The central event of the week will be Friday's publication of a report on the US labor market in April. The probability of the fall on the US markets in the near future is high due to the fall in profits of US corporations, the deteriorating of macroeconomic data and possible correction on the commodity markets.
European stocks are down today on a stronger euro, which negatively affect the export-oriented companies in the Eurozone. In addition, the shares of the banking sector reduced due to negative corporate statements for the 1st quarter of this year. The British market is pressured by the news of the fall of the manufacturing PMI to 49.2, against the forecast of growth to 51.3. A value below 50.0 indicates contraction in the sector. At any time, may increase speculations about a possible exit of the country from the European Union after the referendum that will be held in June. Our medium-term outlook remains positive, but we expect the fall in the coming weeks.
Markets in the Asia-Pacific region today showed a negative dynamics against the background of weak statistics on the manufacturing PMI in China, which fell to 49.4 in April from 49.7 in March. In Japan, continue the days off and investors will return to the market on Friday. A strong positive factor for the Australian market was the decision of the Reserve Bank of Australia to lower the interest rate by 0.25% to 1.75%. The reason for this move was the fall of the country's consumer price index to -0.2% in the 1st quarter, and the growth of the Australian dollar. We expect growth on the markets of the region in the medium term, but soon fall with a high probability will continue.