07.06.2016 - The US market may reach historic highs
American stock indexes showed a positive dynamics and yesterday came close to all-time highs. Support for the Bulls was the growth of the energy sector, in addition, Fed chairwoman Janet Yellen stated about saving of the positive labor market situation in the US, despite the recent publication of a weak report on the number of new jobs. Today, the dynamics of trading will affect the news on labor costs (12:30 GMT) and the volume of consumer lending in the country. According to our estimates, the potential for further growth is limited and we expect the beginning of a correction on the markets of the country in the near future.
Major European stock indexes show a positive dynamics against the background of the general growth of optimism on the market, due to the expected retention of US monetary policy settings unchanged at the next Fed meeting on June 14-15. Today was published the data on industrial production in Germany, which rose by 0.8% in April against a decline of 1.1% in March. The dynamics of trading will also be affected by the preliminary data on GDP growth in the Eurozone (09:00 GMT). The focus of investors in the region is on the referendum on the UK's membership in the EU, and this factor will keep volatility elevated in the coming weeks. Our medium-term outlook remains positive, but the risk of correction remains high in the near future.
Major stock markets in the Asia-Pacific region grew due to rising optimism in the US, as well as the rise in oil prices. The Japanese market has been supported by the yen decline, which is positive for local exporters. Reserve Bank of Australia decided not to change the parameters of monetary policy in the country, against the background of positive dynamics for domestic consumption and export in the country. Tomorrow in China is the day off, but the dynamics of trading will affect the important data on the trade balance of China and the growth of Japan's GDP. Despite current growth, the likelihood of falling of stock indices remains high in the near future.