US stock indexes have shown negative dynamics yesterday on the background of the devaluation of the Chinese currency. Investors fear the crisis in China and fears rose today after the publication of statistics on slower growth of industrial production in China to 6.0% vs. expected 6.7%. Today, the dynamics of trading will be affected by the news on the number of open positions in the US (14:00 GMT). Investors will not hurry with new moves until tomorrow's publication of important statistics on retail sales in the United States, which traditionally have a strong influence on the course of trading. We maintain a positive medium-term view, but the current decline may continue in the near future.
Major European stock indexes continue to fall against the background of China's non-principal background that has led to a drop in shares of commodity companies and automakers. It is worth noting that the Chinese market is the largest automobile market in the world and the positive expectations of European automobile manufacturers are related to sales growth in China. Today, was released a report on the UK labor market, according to which the unemployment rate was 5.6%, while the number of unemployed persons decreased by 4.9 thousand. Sentiment of traders have worsened amid the news on reduction of the volume of industrial production of the euro area in June by 0.4%, compared with an expected drop of 0.1%. Falling of indexes may continue in the near future, but in the medium term, we expect the growth.
The main markets of the Asia-Pacific region continued to fall against the backdrop of further devaluation of the yuan. Thus, the People's Bank of China today lowered the exchange rate of 1.6%. As a result, the majority of Chinese stocks showed a negative trend. On the other hand, the weakening of the yuan is a positive for exporters. Today was published statistics on industrial production in China, whose growth slowed to 6.0%, vs. 6.7%. At the same time, the volume of industrial production in Japan in June rose by 1.1%. We expect a fall in the indices in the region in the near future and maintain the medium-term positive outlook.