American stock markets showed strong growth yesterday on news of the acceleration of the work on the reform of state-owned enterprises in China and involving private capital. Also the situation in Greece and China currently seems to be more stable than in the previous month. Activity on the market of mergers and acquisitions also supported the bulls. Deputy head of the Federal Reserve, Stanley Fischer noted a steady improvement on the labor market of the country, but noted weak inflation, which may adversely affect the decision to raise the interest rates of the Fed. Today, we pay attention to the data on the index of small business optimism in the US (10:00 GMT) and wholesale inventories in the US (14:00 GMT). Our medium-term outlook remains positive, but we expect a fall in the near future.
European stocks yesterday showed growth against the background of positive news from China, where the government said the revitalization of the reform of public corporations. Today has been published a review of retail sales in the UK in July, which for the year rose by 1.2% in July against 1.8% in June. The index of business confidence in Germany unexpectedly fell to 25.0, compared with an expected increase to 31.7. The comparable figure in the euro zone rose to 47.6 against 43.9 expected. Uncertainty in the US and China continues to restrain the growth of European markets, supported by a program of quantitative easing in the Eurozone. We maintain a positive medium-term outlook for the markets in the region.
Markets in the Asia-Pacific region showed a slight decrease on the background of the sudden devaluation of the yuan. Positive expectations of investors were supported by the news about the growth of the volume of new lending in China in July to 1.48 trillion vs. expected 725 billion. The volume of orders for engineering equipment in Japan rose only by 1.6% in July against 6.6% in the previous period. Tomorrow will be published important statistics on industrial production in Japan and China, which will depend on the further movement of the index in the near future. Our medium-term outlook remains positive, despite the risks associated with China.