14.07.2014 - The first trading day of the week promises to be quiet
U.S. stock indexes have shown a slight increase in the last trading day of the week. The reason for moderate optimism was reducing concerns about the instability in the Portuguese banking system. In addition, analysts continue to monitor reports of U.S. corporations in the second quarter, which show strong results. In the U.S. today is not expected to be released the important macro and central events of the week will be the publication of the Beige Book and release of housing data. We admit the possibility of further growth in the near future, but in the medium term we expect the fall in U.S. stock markets.
The last trading session ended with a slight increase of the major European indexes. Markets have calmed after the comments of the Portuguese prime minister and leading banks about the stability of the banking system in Portugal and Banco Espirito Santo, which missed payments on the bonds. In France today, is a holiday and markets expect the publication of data on industrial production in the Eurozone (09:00 GMT) and the speech of the ECB President Mario Draghi (17:00 GMT). Deteriorating economic performance in Europe give reason to keep midterm negative outlook on the stock markets of the region.
Most markets in the Asia-Pacific region ended the trading session on Monday with growth against the background of overall improvement of the news background that is primarily associated with a stable outlook on the banking system in Portugal. Considering the lack of important statistics, markets are waiting for tomorrow's statements of Bank of Japan on monetary policy, data on foreign direct investment and lending volume in China, as well as the publication of minutes of the previous meeting of the Reserve Bank of Australia. We maintain midterm negative outlook for the Chinese and Australian market and assume the possibility of growth of indexes in case the devaluation of the Japanese yen.