03.08.2016 - Investor sentiment has deteriorated
American stock indexes decline on weak statistics on GDP growth in the US, which was published last week. Corporate reporting season was unable to become a driver for continued growth and investors in the near future will probably fix positions. Yesterday was published data according to which the consumer spending rose by 0.4% in June, which is 0.1% more than the forecast. Today, it is worth paying attention to statistics on non-manufacturing PMI in the US (14:00 GMT). The main event this week will be the publication of the report on the US labor market in July. Our medium-term outlook remains negative and we look forward to correction in the near future.
European stock indices showed a slight decline today. Service PMI in the euro area showed an increase to 52.9 in July, which is 0.2 more than the previous figure. Today, the dynamics of trading will also affect the data on the UK service PMI (08:30 GMT) and retail sales in the Eurozone (09:00 GMT). Investors are waiting for tomorrow's decision of the Bank of England on monetary policy, which will lead to increased volatility on the market. According to our estimates, the UK’s exit from the EU will put pressure on the European markets in the medium term.
Markets in the Asia-Pacific region today did not show uniform dynamics. Most of the indexes in the region fell amid worsening sentiment in the United States. The negative impact has also had a stronger yen amid growing demand for defensive assets and market disappointment with respect to Japan's measures to stimulate the economy, whose volume totaled only 28 trillion yen ¾ of which are earmarked loans. Tomorrow we should pay attention to retail sales in Australia. The dynamics of the indices in the region will continue to be influenced by commodity prices. We forecast a drop in the medium term.