The US stock market last week was consolidating near historic highs and positive data that have been published in the last trading day of the week, could not lead to the continuation of growth of indexes. So positive was the news on GDP growth in the euro area by 0.2% in the 3rd quarter against the forecast of 0.1% increase. In addition, the US has published data on US retail sales, which rose by 0.3%, which is 0.1% better than expected. Decline in oil prices contributed to this growth. In addition, it became known about the growth of the index of US consumer confidence to 89.4, against the forecast of 87.3. Today we should pay attention to the statistics on the volume of industrial production in the US (14:15 GMT). At the moment, we can see the weakness of the bulls, and the lack of drivers for due to the end of the corporate reporting season in the US and expect the decline of indexes soon. Our medium-term outlook also remains negative.
Major European stock indexes showed a slight increase on Friday amid positive data for GDP growth in the euro area by 0.2%, which is 0.1% better than expected and French GDP by 0.3%, against an expected rise of 0.1%, and previous fall by 0.1%. The consumer price index remained at 0.4%, despite the drop in oil prices. Today we should pay attention to the report on the trade balance of the Eurozone (10:00 GMT) and ECB President Mario Draghi (14:00 GMT). It is worth noting that the European markets are under the pressure of geopolitical risks associated with the Ukrainian crisis and the deterioration of relations between the West and Russia. We maintain a medium-term negative outlook for European markets.
Markets in the Asia-Pacific region today show a negative trend in connection with the publication of data on reduction of the Japanese GDP by 0.4% in the 3rd quarter against the forecast of growth by 0.5%. It is worth recalling that raising the sales tax in April from 5% to 8% has led to a deterioration in the third largest economy in the world. Despite the current decline, which is likely to continue in the coming days, the demand for the shares will be maintained by the purchases of the national pension fund in Japan. Tomorrow in the region we should pay attention to the statistics on the index of leading economic indicators in Australia and minutes of the previous meeting of the Reserve Bank of Australia. We maintain a medium-term negative outlook on the markets of the region, except for the Japanese.