Major U.S. stock indexes finished the trading session with a slight increase. Weak labor market statistics in the U.S., where the number of jobs increased by 179 thousand, compared with an expected 217 thousand was offset by an increase in the non-manufacturing PMI of the U.S. to 56.3, compared with an expected 55.6. In the beige book was noted the strengthening of the housing market, despite the mixed results across the country, as well as consumer spending growth, with increased sales in the auto sector and tourism. Today we should pay attention to the labor market data (12:30 GMT) and news from the ECB meeting. We expect the correction on American stock markets and keep a long-term negative outlook.
Major European indexes finished trading with mixed dynamics. Gross domestic product of 18 countries of the Eurozone increased by 0.2% in Q1 2014, which coincided with forecasts of analysts. Services PMI of the Eurozone fell by 0.3 to 53.2 and in the UK by 0.1 to 58.6. Today, in the focus of investors will be the ECB meeting at which may be approved new measures to fight the low inflation that threatens the economic recovery in the euro area. The course of trading may also be affected by data on retail sales (09:00 GMT). We will revise the forecast to the European market after the press conference of Mario Draghi (12:30 GMT).
Markets in the Asia-Pacific region have not changed much today. The services PMI in China decreased by 0.7 to 50.7 in May, which disappointed investors. The dynamics of the Australian market was negatively impacted by the news about trade deficit in April in the amount of 0.12 billion, compared with an expected surplus of 0.40 billion. Imports in the country increased by 2% while exports fell by 1%. The Japanese stock market stopped the growth due to the strengthening of the yen. We maintain a long-term negative outlook for the Chinese and Australian market and expect the continued growth of the Japanese indexes in connection with the expected devaluation of the yen.