08.08.2016 - Sentiment on the market has improved
American stock indexes showed an increase on the last trading day of the week against the publication of statistics on the US labor market. Thus, the unemployment rate remained 4.9%, but the number of jobs outside the agricultural sector increased by 255 thousand vs. expected 180 thousand. It is worth noting the increase in the average hourly wage by 0.3% in July against the expected growth of 0.2%. Today, investors will continue to assess employment data. Support for the market will be a recovery in oil prices after the recent decline. Given the growing probability of the Fed raising interest rates this year, as well as the overheated market, we maintain a medium-term negative outlook on the US market.
European stocks showed positive growth caused by strong statistics on the US labor market, which was published on Friday. It is worth noting that the rise in prices caused by technical factors and speculation about the possible freezing of oil production OPEC countries after an informal meeting at the end of September. Investors’ confidence index in the euro area showed an increase to 4.2 in August from 1.7 in the previous period. Tomorrow, on the dynamics of trading will affect the news on industrial production in the UK. We maintain our medium-term negative outlook and expect the decrease in the region's markets in the near future.
Markets in the Asia-Pacific region showed strong growth against a background of statistics on the US labor market. In addition, the decline on the Japanese market has supported the yen against the dollar, which had a positive effect on the stocks of export-oriented companies. China has published important data on the trade balance, the surplus of which in July totaled 52.3 billion dollars against forecasted 47.6 billion dollars. Tomorrow we should pay attention to inflation data in China and the volume of orders for engineering equipment in Japan. According to our estimates, the current growth will not be long and the fall will resume shortly.