American stock indexes dropped significantly last week against the background of negative statistics on terms of industrial production, the volume of which fell in March by 0.6%, which is 0.5% worse than the forecast of analysts. It is worth noting that today, the dynamics of trading will have a negative impact on the drop on oil prices after meeting of oil producers in Qatar had no result. Among the important events we should pay attention to the speech of the Federal Reserve Bank of New York’s chief William Dudley (12:30 GMT), and tomorrow will be published important data on the housing market. According to our estimates, in the near future growth is limited and we expect the resumption of decline on the US markets.
European stocks traded near previous closing level, despite the strong decline in oil prices. Tomorrow will be published statistics on balance of payments, and the index of business confidence in the euro area. According to our forecasts, in the near future markets in Europe will be influenced by commodity prices, which are likely to decline and the expectation of a referendum regarding the UK's membership in the European Union. The uncertainty on the markets will deter the bulls in the near future. Our medium-term outlook remains negative.
Markets in the Asia-Pacific region today showed a decline against the backdrop of a sharp drop in oil prices and other raw materials. Increased demand for the yen as a defensive asset that led to a decline in the Japanese stock market, which traditionally strongly reacts to the movement of the yen. Accelerating the pace of industrial growth in China, reduce tensions in the region, but to continue to grow, will be needed a positive external background. Tomorrow it is worth paying attention to the previous RBA meeting minutes, and on Wednesday will be published important data on the trade balance in Japan. We expect growth on the markets of the region in the medium term.