14.05.2014 - American stock markets reached historical highs

Broad index of American stocks S&P 500 for the first time in the history crossed the mark 1900. It is worth noting that the U.S. market has grown despite the weak retail sales data, which in April rose by only by 0.1%, compared with an expected growth of 0.5% and the previous figure 1.5%. In addition, inventories rose by 0.4%, in line with analysts' expectations. A positive factor has become a message about the growth of the index of optimism in the small business, which is a major employer in the U.S. to 95.2, with an expected growth to 94.6. Today, the course of trading may be affected by data on producer price index (12:30 GMT). We expect a correction on the market and keep a long-term negative outlook on the U.S. indexes.

Major stock indexes in Europe renewed six-year highs on the background of positive corporate news and negative macro. Thus, ThyssenKrupp shares rose 4.1%. Largest steel producer in Germany predicts that the profit in 2014 will increase by nearly two times in comparison with 586 million euros in 2013. Meanwhile, the index of business confidence in Germany fell to 33.1, compared with an expected 41.3, and in the Eurozone fell to 55.2, against 63.5 expected. Today, the focus of investors will be on the report on industrial production in the euro area. We expect a correction on the markets and keep a long-term negative outlook for the European indexes.

Today Asian markets traded with mixed dynamics. Thus, despite the fears of the crisis in the construction sector, Chinese indexes grow on expectations of reforms by the government that could result in simplification of investing in China. On the Australian market today was a slight correction after the presentation of the federal budget which states budget spending cuts and tax hikes. The Japanese market is slightly reduced before the report of Sony Corporation and in connection with strengthening of the yen. We maintain our negative outlook on the stock markets of China, Japan and Australia.

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