03.06.2015 - Investors are waiting for news on the US labor market

The American stock market fell slightly yesterday on the background of weak statistics on the volume of factory orders in the country which fell by 0.4% in April, against growth of 2.2% in March. Investors did not rush to accumulate positions amid uncertainty about future growth, which is limited by historical highs. At the same time investors are holding back by the Greek crisis and the expectation of release of data on the US labor market on Friday. Today, it is worth paying attention to the non-manufacturing PMI (14:00 GMT) and the Beige Book (18:00 GMT). Our medium-term outlook remains positive, but the growth potential significantly reduced.

Major European stock indexes yesterday showed a decline against the backdrop of uncertainty about the Greek crisis, but today show growth. The reason for optimism in Britain became the data on the growth of the construction PMI to 55.9 in May from 54.2 in April. Retail sales in the euro area rose in April by 0.7%, in line with expectations, while the unemployment rate in the euro area decreased by 0.1% to 11.1%. The Greek issue will continue to support high-level volatility in the near future. Our medium-term outlook for the markets in the region remain positive due to the increased interest in European assets from Asian investors, as well as through a program of quantitative easing.

Markets in the Asia-Pacific region were under the pressure from the negative sentiment on the American markets. The strengthening of the yen was negatively displayed on the quotations of Japanese exporters. In China, the positive data out of the service PMI, which rose in May to 53.5, which is 0.6 more than in March. The Australian market was supported by the report on GDP growth in Australia, which exceeded forecasts with 0.9% in the first quarter, which is 0.2% better than expected. Tomorrow we should pay attention to the statistics on the trade balance and retail sales in Australia. We keep medium-term positive outlook for the markets in the region, but the potential growth declined in recently.

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