The US stock market continued consolidation in anticipation of the release of an important report on the labor market on Friday. In this regard, investors are in no hurry to build up positions. Yesterday, the was released the data by the growth of the number of jobs in the US private sector by ADP, which totaled 185 thousand in July, compared with an expected 216 thousand. On the other hand the service PMI rose to a maximum of 60.3 in 2005. The median forecast of growth was about 56.3. This fact indicates a probable acceleration of the growth of US GDP. Today, we should pay attention to the data on the number of initial unemployment claims in the US (12:30 GMT). Our medium-term outlook remains positive, but we may see a drop in the near future.
Major European stock markets yesterday showed the growth. This positive trend was recorded against the background of strong corporate reporting of a number of companies. On the other hand the market was supported by news on the growth of the service PMI, which reached 54.0, that is 0.2 better than the previous figure, and analysts' forecasts. On the other hand the market was disappointed by weak data on retail sales in the euro zone, which fell by 0.6 in June, which was 0.5% below expectations. Today, optimism is supported by the news on the growth of industrial orders in Germany by 2.0%. The comparable figure in the UK unexpectedly fell by 0.4% in June. The course of trading will also be affected by the statement of the Bank of England on monetary policy and forecasts of the economy growth. We maintain our positive outlook for the stock markets in the region in the medium term.
Major stock markets in the Asia-Pacific region continue to consolidate and investors are waiting for new signals to open new positions in the US, where tomorrow will be released the data on unemployment. The Japanese market was supported by news on the growth of the index of leading economic indicators to 107.2% against 106.9% expected. The data on the unemployment rate in Australia was worse than expected and as a result had risen to 6.3% in July, which is 0.2% more than the previous month. Tomorrow will be issued a statement of the Bank of Japan, which probably will have not much impact on the course of trading. Our medium-term view remains positive.