The US market yesterday showed strong growth against a background of improving expectations about the consensus between Greece and its creditors. The probability of a positive outcome of the talks is high. In addition, traders were cheered by the news on reduction of the US budget deficit to 82.4 billion dollars against 97.4 billion dollars forecast. Today, the central event of the day will be the release of a report on retail sales in the US (12:30 GMT). In addition, we should pay attention to the statistics on inventories in the US (14:00 GMT). Our medium-term outlook remains positive, but growth potential has declined lately.
European stocks rise on investors’ optimism regarding the Greek debt crisis and expectations of reaching a consensus between Greece and its creditors. The British market yesterday was supported by the strong statistics on industrial production in the country, the volume of which increased in April by 0.4%, which was 0.3% better than analysts' expectations. Tomorrow will be published important statistics on industrial production in the euro area, which may disappoint investors, but the market's focus will remain on the negotiation process between Greece and creditors. Our medium-term outlook for the main markets in Europe remains positive due to the program of quantitative easing in the Eurozone.
Markets in the Asia-Pacific region showed growth following the US stock market due to increased optimism on the Greek crisis. The weakening of the yen supported the Japanese index. Australian investors have been pleased with the strong labor market data in the country where the unemployment rate fell to 6.0%, which is 0.2% better than analysts' expectations. Industrial production showed a faster growth to 6.1% in May, which is 0.1% higher than the expectations of experts. Retail sales in China rose in May to 10.1%, which coincided with forecasts of analysts. Tomorrow will be published important statistics on industrial production in Japan. We maintain a positive medium-term outlook for the markets of the region.