US stocks yesterday showed strong growth against the background of a strong labor market statistics in the country. Thus, the number of initial unemployment claims fell to 264 thousand, which is 8 thousand better than analysts' expectations. At the same time, the producer price index fell in April by 0.4%, against the forecasted growth of 0.1%. This fact reinforces the confidence in the later stages of the Fed raising interest rates and weakens the dollar. Today, special attention should be paid to statistics on consumer confidence in the US (14:00 GMT) and industrial production (13:15 GMT). Our medium-term outlook remains positive, but in the near future is likely the price correction.
European stocks rose after declining in the previous week. The leaders of growth were steel companies. The head of the Bank of England announced a possible increase in interest rates in case of improvement of the macroeconomic situation in the country. Today has been published statistics on the construction sector in the country, according to which the volume of production in the sector rose in March by 3.9%, against a decline of 0.3% in February. The course of trading at the end of the week will be affected by the US data and statistics on the index of leading economic indicators in the United Kingdom (13:30 GMT). Our medium-term outlook for European markets remains positive.
Markets in the Asia-Pacific region showed optimism following the US stock indexes. Support for the Japanese market was the fall of the yen, but the index of consumer confidence in the country fell to 41.5, against the forecast of 41.9. At the same time, the volume of foreign direct investment in China has reduced the growth rate to 10.4 in April, against 10.6% in March. The increase in commodity market support optimism on the Australian stock market. Our medium-term outlook remains positive, but the risks associated with the slowdown in China deter buyers.