14.07.2016 - Sentiment on the market has improved
US stock indexes showed little change and continued to consolidate near historic highs. Today, the dynamics of trading will affect data on the number of initial unemployment claims and the producer price index in the US (12:30 GMT). The increase in volatility is expected tomorrow after the publication of reports on consumer price inflation and retail sales in the United States. In addition, we should pay attention to the news on the industry and GDP growth in China. We expect a soon completion of the growth in US markets and maintain the medium-term negative outlook.
European markets today show a positive dynamics on optimism regarding possible additional measures to stimulate the British economy by the Bank of England. Statement on monetary policy of the Bank of England will be published at 11:00 GMT. Growth in the US market also stimulates traders to buy, but the on the market remains the uncertainty. Despite the appointment of a new prime minister of Great Britain, the consequences of the country's exit will be negative for both the EU and the UK. Activity of investors will grow tomorrow after the publication of reports on the trade balance and consumer price inflation in the euro area. Stimulus measures from central banks will be able to support the growth of the markets, but we expect a fall in the medium term.
Markets in the Asia-Pacific region generally rose today in anticipation of stimulus measures from the Bank of England. In Australia, was published important statistics on the level of employment, which rose by 7.9 thousand against the forecast of 10.1 thousand, but at the same time, the unemployment rate increased by 0.1% to 5.8% in June. Today we expect a strong increase in volatility after the publication of data on the growth of GDP and industry, as well as retail sales and business investment in China. In the near future, growth is possible, but we expect the resumption of the negative dynamics in the medium term.