U.S. stocks rose yesterday on positive macro statistics and strong financial report of Intel. Thus, the index of business activity in the housing market in the U.S. rose in July to 53, compared to 49 in June, but the volume of industrial production in June rose by only 0.2%, which is twice as worse than the forecast. Beige Book pointed out the improvement in the labor market and consumer spending. Further movement of the U.S. indexes will depend on the statistics on the labor market and the housing market in the U.S. (12:30 GMT). We admit the possibility of continuing market growth in the near future, but keep medium-term negative outlook.
European markets have shown strong growth in connection with rising shares of financial companies in Portugal, as well as strong economic performance in China, where GDP growth and industrial production grew faster than expected. Also positive was the message of the growth of the trade balance surplus of the Eurozone to 15.3 billion, which is 0.1 billion more than in April. The mood of investors today will depend on the data on inflation in the Eurozone (09:00 GMT) and statistics from the U.S. housing market and the labor market. Growth potential on European markets is limited and we expect a resumption of downward movement and maintain a medium-term negative outlook.
Markets of Asia-Pacific region declined slightly. Trading session passed quietly enough on the background of low volatility. Yesterday's data on GDP growth and industrial production in China, is still offset by the fall in the construction sector in China. Strengthening of the Japanese yen has limited the growth of the Japanese market, and in Australia mining companies show the positive dynamics. Tomorrow we should pay attention to the minutes of the meeting of the Bank of Japan. We maintain a medium-term negative outlook on the stock markets of the region. Growth in Japan can continue in case of further devaluation of the yen.