18.07.2016 - The probability of correction on the markets has increased significantly
American stock indexes showed little change on Friday, despite the publication of strong statistics on retail sales, which rose by 0.6% in June, which is 0.5% more than the forecast, as well as the growth of industrial production by 0.6% against the expected expanding by 0.2%. Investors expect the publication of important statistics on the housing market tomorrow. The focus of investors in the near future will be on the news from the UK and the corporate reporting season. Our medium-term outlook remains negative and in the near future there is a high probability of correctional movement.
Major stock indexes in Europe are near previous close levels due to the expectation of the new signals. It is worth noting that on Friday in Turkey was made an unsuccessful coup attempt, but at the moment, analysts do not see a threat to stability in the country. Traders continue to closely monitor the data from the UK, where the news on inflation will be published tomorrow, but on Wednesday will be released a report on the labor market. On Thursday, the ECB will announce a decision on interest rates and in case of additional incentive measures, we can see the growth on the European markets. We expect a decline in the near future.
Markets in the Asia-Pacific region did not show uniform dynamics. In Japan today is a day off. The dynamics of the Australian indexes negatively affected by the fall on commodity markets. In addition, in the country expect tomorrow's publication of minutes of the previous meeting of the Reserve Bank of Australia. Chinese indices are adversely affected by the weakening of the yuan. We recall that on Friday, was published statistics according to which GDP growth is second economy of the world grew by 6.7% in the last quarter, which is 0.1% more than the forecast. We forecast a decline of markets in the region in the near future.