19.07.2016 - The probability of correction on the US market significantly increased
American stock indexes continued consolidation in anticipation of new incentives. Positive corporate earnings failed to lead to further growth. Investors decided to take a break in anticipation of the ECB's decision on monetary policy, which will be published on Thursday. Today, a strong focus on the bidding will have data on the housing market in the US (12:30 GMT). Reduction of oil negatively displayed on the mood of traders. We forecast a drop in prices in the near future within the correction and the potential for further growth is limited.
European stock markets fell today against the background of renewed concerns about the economic situation in the region, which intensified after in Britain on referendum supported the idea of the country's exit from the EU structure. UK’s consumer price index rose to 0.5%, which will deter the Bank of England from lowering interest rates. It is worth noting the sharp decrease in the index of business confidence of the Eurozone, which fell to -14.7 against a forecasted decline to only 12.3. This fact points to the business concerns the current situation. Tomorrow will be published important data on employment in the UK and consumer confidence in the Eurozone. We forecast a drop in European markets in the near future and medium term.
Markets in the Asia-Pacific region did not show uniform dynamics. On the one hand, investors remain wary of the negative from the influence of the UK’s exit from the EU and volatility in commodity markets, but on the other hand, the expectation of additional stimulus measures by the Japanese authorities and the weakening of the yen supported the optimism among investors. Tomorrow we should pay attention to the data on the index of leading economic indicators in China and Australia. We expect a correction in the near future and growth potential on the markets of the region will be limited in the medium term.