11.05.2016 - On the market there are no drivers for further growth
US stock indexes showed a positive dynamics against the background of positive mood in Asia and Europe. In addition, support for the market was the increase in oil prices due to interruptions of supplies from Canada and Nigeria. Wholesale inventories in the US rose by 0.1% in March, after declining by 0.6%, in February, which is positive for the country's GDP. Today, the course of trading will affect the dynamics of oil prices. On Friday will be published an important report on US retail sales. Our forecast for the US market in the coming weeks remains negative.
European stock indices are falling on the background of the profit fixation after the previous days' growth. It is worth noting that the volume of industrial production in the UK rose by 0.3% in March, against the forecast of 0.7% and decline by 0.2% in the previous period. Tomorrow we should pay attention to the data on the volume of industrial production in the euro area. Investors remain optimistic about European equities due to the soft monetary policy of the ECB, the fall of euro and the improvement on the labor market. We expect a fall on the markets of the region in the short term but in the medium term, growth will resume.
Markets in the Asia-Pacific region showed different directions today. The consumer price index in China was 2.3% for the year, which is less than the target value of 3.0% and makes it possible to further reduce the People's Bank of China interest rates. Japanese markets are supported by the statistics on the index of leading economic indicators which rose to 98.4% in March, against 96.8% in February. Tomorrow we should pay attention to the data on balance of payments in Japan, and on Saturday will be published important statistics on the volume of industrial production in China, which has traditionally had a strong influence on the course of trading. Our medium-term outlook for the region's markets remains positive, but we are forecasting a decrease in the coming weeks.