19.06.2015 - Shanghai market fell by more than 6%

The US stock market yesterday showed strong growth against the backdrop of the Fed statement on the strong US economy, which allows to raise interest rates this year. Optimism prevailed on the market despite the decline in GDP growth forecast to 1.8-2.0% in 2015. In addition, investors were pleased with the statistics on which the consumer price index in May increased by 0.4%, against 0.1% in April. The number of initial applications for unemployment benefits in the US fell to 267 thousand, compared with an expected 276 thousand. Today, in the US will not be published important statistics and investors will not rush to build up positions ahead of the weekend. Our medium-term outlook remains positive.

Major European stock indexes finished yesterday's trading session with the growth due to rising US stock market. The main topic for the European investors was the negotiation process between lenders and Greece. The head of the IMF said that on June 30 is the deadline for the payment of approximately 1.6 billion euro loan. If negotiations fail, Greece will default. We keep medium-term positive outlook for the market in the region due to improved macroeconomic performance in the euro area and the positive effect of the program of quantitative easing by the ECB.

The major indexes in the Asia-Pacific region continues to show growth against the backdrop of the positive dynamics of US indexes. The exception is the Shanghai index, which plummeted after reaching highs since 2008 last week. The reason for pessimism in China are speculating about the possible termination of incentives from the Chinese government. We recall that in November, interest rates were lowered three times and reserve requirements for banks by 2 times. Fall is enhanced by closing marginal positions. Business activity index in Japan rose by 0.1% in April against a decline of 1.4% in March. Our medium-term outlook for the stock markets in the region is positive.

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