10.07.2015 - Growth in China has improved investor’s sentiment

American stock indexes showed modest growth against the backdrop of positive from China, where, thanks to the provision of low-cost funding and the introduction of a number of restrictions managed to stop the fall on the stock market and currently indexes in the country are growing. In addition, the positive was another provision of the reform plan by the Greek prime minister, which will be considered at the weekend. Statistics on the number of initial unemployment claims in the US disappointed investors. Thus, the figure rose to 297 thousand, compared with an expected 275 thousand. Today, it is worth paying attention to statistics on wholesale inventories in the US (14:00 GMT) and the statement of Janet Yellen (16:30 GMT). Our medium-term outlook is positive.

Major European stock markets showed growth against the background of new hopes to resolve the situation with the Greek crisis. It should be noted that Greece has made a request for a new credit program for three years, which increases the likelihood of achieving a consensus on reforms in the country, which are necessary for debt restructuring. The growth on the Chinese market has also improved the mood of investors. Today was published a positive statistics on the UK trade balance deficit which decreased to 8.0 billion vs. expected 9.7 billion. On the other hand the volume of production in the construction sector of the country fell by 1.3% in May against the forecast of growth by 0.7%. Our medium-term outlook for the market in the region remains positive despite possible short-term drop in connection with the Greek crisis.

Most markets in the Asia-Pacific region showed positive trend against the background of the positive impact of measures by the Chinese government. Thus, the provision of cheap cash resources and a number of restrictions on the market allowed to stop the fall on the market and lead to its growth. The situation remains volatile. Consumer confidence in Japan rose to 41.7 that is worse than the forecast of 41.9, but better than the previous value of 41.4. On Monday, we expect a high level of volatility with the decision on Greece and the publication of data on China's trade surplus and industrial production in Japan. Our medium-term outlook for the stock indices in the region remains positive.

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