18.05.2015 - Industrial production continued to decline in Japan

The US stock market ended the trading week near the previous close levels. The reason for this result was the negative data on the decrease in industrial production in the US in April that declined by 0.3%, contrary to expectations of growth from analysts. This fact indicates the absence of a pulse at the beginning of the second quarter. In addition, the consumer confidence index from the University of Michigan fell to 88.6 in May, against the forecast of 95.8. Today, the course of trading may be insignificantly affected by the data on the index of business activity in the housing market in the United States. Our medium-term outlook remains positive, but we do not exclude the correction of the markets in the near future.

S&P 500 in 2015

European stocks showed a fall on the last day of the trading week and currently continue to be under the pressure from negative sentiment after the release of weak data in the US. Today, market volatility will be reduced. Tomorrow we should pay attention to the statistics on inflation in the euro area and the UK, as well as data on the trade balance in the Eurozone. Greek crisis may strengthen market volatility. Improved macroeconomic data in the Eurozone slowed against the background of rise in price of the euro, but the program of quantitative easing will continue to positively influence the sentiment towards European assets. We remain medium-term positive outlook for the market in the region, but do not exclude the correction in the coming weeks.

Markets in the Asia-Pacific region show different dynamics. Thus, positive for Japanese investors was the weakening of the yen, which stimulates the growth of shares of exporters. At the same time, in the country was published contradictory statistics. On the one hand the volume of domestic orders for engineering products in the country grew by 2.9% in March, compared with an expected 1.7%, but on the other hand, the volume of industrial production in Japan fell by 0.8% in March, against the expected drop by 0.3%. Tomorrow we should pay attention to the publication of minutes of the previous meeting of the Reserve Bank of Australia, where it was decided to lower interest rates to 2.00%. Australian market is supported by rising commodity prices. We maintain a positive medium-term outlook for the markets of the region.

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