US stocks declined yesterday amid weak corporate reporting of companies such as Walt Disney, Macy's and Fossil. It should be noted that the surplus of State Budget totaled 106.5 billion dollars in April against the forecast of 116.2 billion. Today, the dynamics of trading can affect the data on the number of initial unemployment claims (12:30 GMT), as well as statements by the Fed. On the other hand, activity on the market will be restrained tomorrow because of publication of a report on retail sales in the United States. We forecast a drop in the US stock markets in the coming weeks on the background of lack of drivers for growth, weak corporate reporting season, as well as the expected correction on the commodity markets.
European stock indices show a negative dynamics against the background of pessimism on the market. Today, the dynamics of trading will affect the news on industrial production in the Eurozone (09:00 GMT) and the publication of the quarterly inflation report from the Bank of England (11:00 GMT), and then speech the Bank of England’s head Mark Carney (11:45 GMT). We should also pay attention to tomorrow's report on the euro area GDP growth in Q1. The strong influence on the European markets will have the dynamics of the US indices. We forecast a drop in European markets in the near future, but the medium-term outlook remains positive.
Markets in the Asia-Pacific region did not show uniform dynamics. The Japanese market has supported the yen decline, but big companies like Toyota Motors and Bridgestone have demonstrated negative dynamics. Nissan has announced the purchase of shares of Mitsubishi by 2.2 billion, making it the largest shareholder. Index of the current economic situation in Japan Eco Watchers in April fell to 43.5, against 45.4 in March. The Australian market was supported by the rising commodity prices. We maintain our medium-term positive view on the markets of the region, but in the near future may see a correction.