04.06.2014 - The fall of the housing market in China has led to a decrease on Asian markets
Major U.S. indexes finished yesterday's trading session with a slight decrease. Traders expect the ECB's decision on measures against the low inflation, which may be approved tomorrow. Among macrostatistics we should highlight the growth of factory orders in the U.S. by 0.7% in April, which is 0.1% better than expected. Today the course of trading may be influenced by data on the labor market, the trade balance (12:30 GMT), the non-manufacturing PMI in the U.S. (14:00 GMT) and the publication of the Beige Book (18:00 GMT). We expect a correction on the U.S. stock market and maintain a long-term negative outlook.
Major European stock indexes fell, despite the positive data on unemployment in the euro area, which decreased by 0.1% to 11.7%. Decrease in the consumer price index in April to 0.5% probably will push the ECB tomorrow to approve new measures to deal with low inflation. Today we should pay particular attention to the data on service PMI (08:00 GMT) and the euro area GDP growth in Q1 (09:00 GMT). Investors will not rush to build positions, and the future outlook of the market will depend on the results of the ECB meeting tomorrow.
Markets of the Asia-Pacific region reduced. The exception is the Japanese market, which continues to grow on the back of devaluation of the yen. The Chinese market is falling due to the fall of the real estate market. Thus, home sales in Beijing fell by 52% compared to last year. Australian market declines following the Chinese, despite the fact that GDP in Q1 grew by 1.1%, which is 0.2% better than expected. We expect a continued decline in the Chinese and Australian markets and the growth in the Japanese stock market in the medium term.