12.07.2016 - In the US has started corporate reporting season
American stock indexes continued to rise yesterday and updated historical highs against the background of positive statistics on the labor market in the US, which was published on Friday. Despite the strong data, the probability of the Fed tightening monetary policy this year is still low which also supports the growth of the market. Yesterday started the corporate reporting season in the US, which can greatly affect the medium-term expectations of investors. Today, the growth will support oil price recovery. In addition, we should pay attention to statistics on wholesale inventories in the US and the number of vacancies (14:00 GMT). We expect a correction in the near future.
European stocks are rising today after the US markets, as well as due to the reduction concerns on the situation in the UK. The reason for the improved sentiment on the markets of the region was the news that the new Prime Minister of the United Kingdom will be Theresa May. Investors are waiting for the publication of the Bank of England's quarterly report on the state of the economy (11:00 GMT). Despite the current optimism, the pressure of problems associated with the release of the UK from the EU will continue to have a negative impact on investor sentiment. We forecast a decline in European markets in the medium term.
Markets in the Asia-Pacific region showed growth against the backdrop of the positive influence from the United States. It is worth noting that the decline in the price of the yen supported the Japanese market. At the same time investors are optimistic about the possibility of increasing stimulus measures after the ruling party has won the election in the upper house of Japan. It should be noted positive dynamics in Australia, due to an increase in commodity markets, as well as strong statistics on the index of business sentiment in Australia, which rose to 6 in June, compared to 3 in May. Growth can continue in the near future, but in the medium term, we can see a decrease in the region's markets.