American stock market ended the trading day with growth on the background of positive data on the housing market in the United States, where the number new home construction permits rose in July to 1.05 million., Which is 0.05 million more against the forecast. At the same time, the number of housing starts increased to 1.09 million against the forecast of 0.97 million. Besides, investors positively assessed the news of the next meeting of the Presidents of Ukraine and Russia in Minsk on August 26th. Today, the central event of the day will be publication of the minutes of the previous meeting of the Fed. Further growth is limited by historical highs and anticipation of the speech by Fed chairman at the conference in Jackson Hole on Friday. We expect the beginning of a significant correction in the near future and maintain a medium-term negative outlook on the American market.
The overall positive mood on global stock markets has led to continued growth in most European indexes yesterday. Reasons for optimism was also the positive corporate earnings and expectations of investors regarding the possible soon settlement of the military conflict in eastern Ukraine. Traders' sentiment deteriorated significantly after the publication of data on the fall of the German producer price index by 0.1%, although analysts did not expect changes. Today we also should pay attention to the balance of production orders in the UK. We maintain a medium-term negative outlook for the European market.
Indexes of the Asia-Pacific region have not changed much today. Negative for the market was the statistics from Japan and Australia. Thus, Japan's trade deficit reached 1.02 trillion against the forecast of 0.77 trillion, and the index of business activity in June fell by 0.4%, which is twice as worse than the forecast. Australian index of leading economic indicators also disappointed investors. Thus, the index fell in June by 0.1%, against an increase of 0.1% in May. Tomorrow is expected to be published the statistics on manufacturing PMI in China and Japan. We maintain a medium-term negative outlook on most stock indexes in the region except for Japanese.