21.07.2014 - ​Reporting season in the U.S. continues

The U.S. stock market closed the last trading session of the week with growth after the sharp decline yesterday. Investors' fears about the situation in Ukraine, got weaker on the background of the Ukrainian army successes in the fight against the separatists, but the active phase of a ground operation in Gaza has led to a large number of victims. The index of U.S. consumer confidence fell to 81.3, compared with an expected 83.5, while the index of leading economic indicators rose by only 0.3% which is 2 times worse than expected. Support for the market has had a report of Google corporation. About 77% of the 82 companies that have already reported and included in the index S&P500, exceeded analysts' forecasts. This week will present their reports for about 140 companies which are in the S&P500, including McDonald's Corp., Boeing Co., Apple Inc. and Microsoft Corp. We maintain our negative medium-term outlook, but admit the possibility of continued growth of the market in the near future.

Major European markets closed the trading session mixed. Investors fear the escalation of conflict in Ukraine, and tomorrow probably will be taken a decision to tighten sanctions against Russia in connection with charges of supporting separatists in eastern Ukraine. Today is not expected to be released an important macro in the Eurozone and in the UK have been published data on the house price index which fell by 0.8% in July. We maintain a medium-term negative outlook for European indexes, and continue to monitor the situation in Gaza and Ukraine.

Movement of the indexes in the Asia-Pacific region was multidirectional. Investors do not hurry to open positions in connection with the beginning of the ground operation in Gaza. Growth of fears among investors has led to increased demand for the Japanese yen, but the Japanese market is closed today due to the holiday. Chinese investors are concerned about the worsening situation in the construction sector. The Australian market showed a slight increase despite the weakness of the commodity market today. We maintain our negative medium-term outlook for equity markets in the region.

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