10.06.2015 - Investor sentiment improved

US stock indexes finished yesterday's trading session near the previous close. The uncertainty regarding the timing of rising interest rates the Fed continues to constrain growth. The index of small business optimism in the US rose to 98.3 in May, which is 0.4 better than the forecast, wholesale inventories rose by 0.4%, while the number of open vacancies has reached a historic high at 5.38 million against the expected 5.03 million. The improvement in the labor market is pushing the Fed to raise interest rates, which will have a negative impact on the stock market indexes, and may occur in September. Today, volatility is reduced, but tomorrow we should pay attention to important statistics on retail sales in the country. The medium-term outlook remains positive.

Major European stock indexes today show a positive trend. The Greek crisis continues to be the center of attention and keeps volatility high. The UK market was supported by news on the growth of industrial production in the country by 0.4% in April, against growth of 0.6% in March. Industrial production in France fell by 0.9%, and in Italy by 0.3%. Investors reacted positively to the rise in yields of German bonds and expect reaching consensus on reforms in Greece. Our medium-term outlook for the market in the region remains positive, but the decline may continue in the near future.

Markets in the Asia-Pacific region did not show uniform dynamics. The Chinese market is supported by expectations of new measures to stimulate economic growth due to low consumer price inflation, which slowed to 1.2%. Japanese indexes were under the pressure of a sharp strengthening of the yen after the statement of the Bank of Japan that the yen is not likely to continue to decline. At the same time, the volume of domestic orders for engineering products in Japan rose by 3.8%, compared with an expected decline of 2.0%. Tomorrow we should pay attention to important statistics on the unemployment rate in Australia and the volume of industrial production in China. Our medium-term outlook for the market in the region remains positive, but in the near future we may see a correction.

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