08.07.2016 - Labor market data in the US will be in the spotlight
American stock indexes continue to consolidate before the publication of an important US labor market report for June (12:30 GMT). It should be noted that market sentiment remains pessimistic in connection with fears of further slowdown in the global economy. To continue the growth and updating of historic highs are needed new incentives. Today, the volatility on the market will be increased. We forecast a drop in prices in the medium term and the beginning of a decline in the near future.
The main European stock indexes showed growth today against the background of a slight decline in investors' concerns about the global economy, but risks of resumption of negative dynamics remain high. Germany's trade surplus totaled 22.2 billion euros in May from 24.1 in April. On Monday, will be held a meeting of finance ministers of the Eurozone, at which can be taken important decisions to stimulate the region's economy amid negative impact of the UK exit from the EU. Our medium-term outlook for European markets remains negative due to the expected worsening of macroeconomic indicators in connection with the results of a British referendum.
Markets in the Asia-Pacific region showed a decrease today. Growing demand for the yen continues to put pressure on the Japanese index. Chinese investors are waiting for the publication of statistics on inflation in the country, which will be released on Sunday. Investors continue to monitor the actions of the central banks in the region that can launch additional measures to stimulate growth amid concerns about global growth prospects. We expect saving of high level of volatility in the near future and expect a decline in the coming months.