20.05.2015 - Investors are waiting for the publication of minutes of the Fed meeting
US stocks declined slightly after updated historical highs earlier this week. According to some analysts, the stock are currently fairly valued and there is no reason for significant growth in the near future. Strong statistics on the US housing market, where the number of housing starts rose to 1.14 million vs. expected 1.02 million, has increased expectations about the Fed raising interest rates this year. This increase will negatively affect the US stock indexes. Today, the focus will be on the publication of minutes of the previous meeting of the Federal Reserve in which investors plan to see the evaluation of the impact of the slowdown of the US economy at the beginning of this year. Our medium-term outlook for the US market remains positive, but we note the low growth potential.
European stocks rose yesterday in connection with the statement of the representative of the ECB official Benoit Kere on intention to carry out more active in assets purchases through the program of quantitative easing before the summer. At the same time, the growth of British assets restrained negative statistics on consumer price inflation, which fell in April by 0.1%. Today, investors will not rush to build up positions ahead of the publication of minutes of the previous meeting of the Federal Reserve, as well as the release of a large block of macroeconomic statistics for the euro area and the UK. Our medium-term outlook remains positive due to the positive effect of the program of quantitative easing in the Eurozone, but the risks associated with the restructuring of the Greek debt holding back new purchases.
Indexes in Asia-Pacific region showed no unified dynamics. The fall of the yen supported the growth of the Japanese market. In addition, investors were cheered by the strong data on Japan's GDP growth of 0.6% in the first quarter of this year. Domestic demand was the main driver of economic growth. Traders wait for tomorrow's publication of data on manufacturing PMI in China and Japan, that can change the mood of investors. Incentives from the government of Japan and China continue to support growth on the markets, but we note the strong influence of the US markets on the dynamics of the indexes in the region. Our medium-term outlook for the stock markets in the region remain positive.