05.08.2016 - Investors are awaiting for the publication of US unemployment report
American stock indices ended the trading session around the previous closing levels. Activity on the market was restrained by waiting of today's publication of an important report on the labor market in the US (12:30 GMT). In case of positive statistics, the probability of the Fed raising interest rates this year will grow, which is negative for the stock market, but on the other hand, this fact compensates the negative associated with the recent publication of weak data on US GDP growth by 1.2% in the second quarter. Our medium-term outlook remains negative and we expect the beginning of reduction in the near future.
European stock markets now are showing moderate optimism before the release of important labor market report in the US. It is worth noting that the Bank of England's decision to lower its key interest rate from 0.50% to 0.25%. In addition, since September will be resumed the program of buying government bonds with a volume of 60 billion pounds. It is worth noting that home prices in the UK fell by 1.0% in July, and this trend will continue due to the exit from the EU. Today also will be published weak data on industrial orders in Germany, which fell by 0.4% in June against the forecast of growth by 0.5%. We expect the beginning of a correction on the stock markets in the near future and maintain the medium-term negative outlook.
Markets in the Asia-Pacific region showed different dynamics. Support was the recovery of prices on commodity market, but buying is restrained by the expectation of release of important statistics on employment in the United States. Japanese investors were pleased today by the news according to which the average salary for the year increased by 1.3% against the forecast of growth by only 0.4%. On Monday, investors will assess the news from the US, as well as important statistics on China's trade surplus, which affects the mood of investors in the region, as well as the index of current economic situation in Japan. Our medium-term outlook remains negative and we expect increased activity in the coming trading sessions.