17.04.2015 - Greece continues to disappoint investors

US stock markets continue to consolidate below the levels of historical highs and finished yesterday's trading session around the previous close levels. Positive corporate reports could not neutralize the investors' concerns about a possible correction. Labor market statistics disappointed traders. Thus, the number of initial claims for unemployment benefits in the US rose to 294 thousand, which is 10 thousand more than analysts' forecasts. At the same time, the number of housing starts in March totaled 0.93 million vs. expected 1.05 million. Today the dynamics of trading will depend on the data on the Consumer Price Index (12:30 GMT) and the index of consumer confidence in the US (14:00 GMT). Our medium-term outlook remains positive, but in the near future we may see a downward correction.

The main European stock indexes continue to decline despite the positive effect on the program of quantitative easing and improving macroeconomic statistics. The reason for the negative sentiment is Greece. The country continues to negotiate on debt restructuring with creditors, but at the moment we do not see progress in this issue. In addition, the rating agency Standard & Poor's downgraded Greece's credit rating from B- to CCC + with a negative outlook. Today was published statistics according to which the consumer price index in the euro area in March showed a negative value of -0.1%, in line with analysts' forecasts. Our medium-term outlook for markets in the region remains positive, but the Greek debt crisis could lead to a sharp fall in the markets.

Most markets in the Asia-Pacific region showed a strong decline amid deteriorating investor sentiment, which is caused by weak data on the labor market and fears of a Greek default. The exception is the Shanghai market which for the sixth week in a row shows growth on expectations of additional stimulus from the government of China. Positive for Japanese investors became the data on the growth index of consumer confidence in Japan by 1.0, to 41.7. We maintain a positive medium-term outlook for the markets of the region, but in the near future we can see the continuation of the correction.

RISK WARNING: Trading of complex financial products, such as Stocks, Futures, Foreign Exchange ("Forex"), Contracts for Difference ("CFDs"), Indices, Options, or other financial derivatives, on "margin" carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading these markets, and seek advice from an independent financial advisor if you have any questions or doubts. Please carefully read our full "Risk Disclosure" and "Risk Disclosures for Financial Instruments & Investment Services". FXFINPRO Capital is the trading name of PFX Financial Professionals Limited, a limited liability company formed under the laws of Cyprus, registered with the Registrar of Companies in Nicosia, Cyprus, under nr. HE 237840 and regulated by the Cyprus Securities and Exchange Commission with license number 193/13.