American stock indexes showed gains after in the US was published weak data on retail sales and industrial production, which reduced the likelihood of the Fed raising interest rates this year. Thus, retail sales fell by 0.3% against the expected decline of 0.1%, while industrial production fell by 0.4%, which is 0.2% worse than the forecast. Today, volatility is increased in connection with the publication of important statistics on consumer price index in the US (12:30 GMT), which is a key indicator that influences the decision of the Fed on monetary policy. We maintain our medium-term negative outlook on the markets of the region and will see strong movements in the near future.
The main European stock indices show a decline on a background of falling Deutsche Bank’s quotations after the news about the need to pay 14 billion dollars for the settlement of disputes on loans secured by real estate. As a result shares of the banking sector in Europe are declining. In addition, investors fear the strong growth volatility of in the coming weeks, related to the Fed’s statement next week. Our medium-term outlook for the region's markets remains negative on the background of consequences of the UK’s exit from the EU, the negative dynamics of commodity markets and the risks from the US and Asia.
Markets in the Asia-Pacific region showed growth today. It is worth noting that in China, Hong Kong, Taiwan, Malaysia and South Korea, markets were closed in connection with the holiday. The growth of the Japanese market was supported by the positive dynamics of a number of supplier companies of Apple, whose shares are growing amid rising sales of new smartphone models. On Monday in Japan is a day off and after the return of investors to the market, the focus will be on the movement of the yen, volatility of which will be increased in connection with the important news from the US. Investors are waiting for the statement of the Bank of Japan on Thursday which may hint at new measures to stimulate economic growth. Our medium-term outlook for the index in the region is negative.