10.06.2016 - Market sentiment deteriorated amid uncertainty

American stock indexes fell on the background of the negative dynamics of oil prices, which has led to a decrease in the cost of energy companies. It is worth noting that the positive statistics on the US labor market where the number of initial unemployment claims fell by 4 thousand to 264 thousand, could not affect the mood of investors. Today, the dynamics of trading will affect the data on the index of consumer confidence from the University of Michigan (14:00 GMT). To overcome the highs, of the US market is needed a significant incentive. We expect a significant correction on the markets of the country in the near future, with the potential reduction by 10-15%.

Major European stock markets showed a negative dynamics yesterday against the background of falling oil prices and growing uncertainty about the prospects for further growth on the markets of the region. Support for the market was the news on the trade surplus of Germany, which in April totaled 24.0 billion euros against 23.7 billion euros in March. Today, little impact on the dynamics of trading will have news on the volume of industrial production in France (6:45 GMT) and Italy (08:00 GMT). In the UK, will be published statistics on the volume of production in the construction sector (08:30 GMT), but the focus of investors in the region will be on the expectations of the results of the referendum on the UK's membership in the EU, which will take place on 23 June. Our medium-term outlook remains positive, but we expect high level of volatility.

Markets in the Asia-Pacific region showed a decline against the general deterioration of investor sentiment on the stock markets due to uncertainty about the prospects for further growth in the global economy. It should be noted that previously, the famous investor George Soros has expressed skepticism about the growth prospects in the world. The pressure on the Japanese market in the near future may have an increased demand for the yen as a defensive asset. Over the weekend, will be published important news on industrial production and retail sales in China. Our medium-term outlook remains positive, but the probability of decline in the near future remains high.

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