06.05.2015 - Traders are waiting for data on the US labor market

US stock indexes showed a decline against the publication of weak statistics on the US trade balance. It should be noted that the pace of growth of trade deficit was the highest since 1996 and has made 43.1%. Thus, the figure totaled 51.4 billion compared to the forecast of 41.2 billion. Today, the course of trading will be affected by the data on the number of new jobs in the private sector of the US (12:15 GMT). The strong influence on investor sentiment may have the statement of the Federal Reserve chairman Janet Yellen. The investors are in no hurry with action in connection with the anticipation of an important labor market statistics on Friday. Our medium-term outlook for US markets remains positive, but we see no bulls’ power for further growth.

European stock markets showed a decline yesterday on speculation about the situation with the uncertainty of the debt restructuring of Greece. We recall that on May 21 the country has to make the payment on the loan of the IMF. It is worth noting that the European Commission raised its growth forecasts for the euro area GDP to 1.5%, against growth estimates of 1.3% in February. British investors expect the parliamentary elections in the country, which will be held on Thursday and after that we can see a strong increase in volatility. Today it became known that in April, Eurozone service PMI rose to 54.1 vs. expected 53.7, while in the UK the same figure rose to 59.5 against 58.6 expected. We keep medium-term positive outlook for the major European indexes, but note the risks associated with the Greek crisis.

Markets in the Asia-Pacific region did not show uniform dynamics. The Japanese market was closed today and investors will come back tomorrow after the long weekend, which will increase volatility. Chinese markets fell despite positive expectations related to the additional measures to stimulate the growth of the economy by the government. Investors are still disappointed by weak data on business activity in the manufacturing sector in China, which continues to decline. Tomorrow will be published statistics on the labor market in Australia, which may significantly change the mood of investors. Our medium-term outlook for the stock indexes in the region remains positive.

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