23.05.2014 - Traders will fix the positions before the long weekend in the U.S.
Major U.S. stock indexes rose slightly yesterday on positive data from China and controversial statistics on the U.S. labor market. Thus, the number of initial unemployment claims rose to 326 thousand, that is 14 thousand worse than forecast, but the number of continuing claims dropped by 13 thousand to 2,653 thousand, which is the lowest level since December 2007. Home sales on the secondary market rose in April to 4.65 million versus 4.59 in March. Today, the focus will be on the data on new home sales in the United States. Traders will fix the position due to the long weekend. We expect a decline of the U.S. indexes in the medium and long term.
European stocks slightly increased yesterday on the background of controversial data on business activity in the region. Thus, the serviceы PMI of the Eurozone in May rose to 53.5, which is 0.5 better than expected, and manufacturing PMI declined to 52.5, against the forecast of 53.2. British index has not changed. Data on GDP growth in the United Kingdom in Q1 matched the forecasts of analysts and showed growth of 0.8%. On Monday, in the UK is a business holiday and we expecting low activity on the European stock markets. We also expect a decline on European markets in the medium and long term.
There is a slight increase on the markets of the Asia-Pacific region. Chinese and Australian markets continue to grow on the background of yesterday's data on the growth of manufacturing PMI in China to 49.7. Let us recall that the ratio over 50 indicates growth in the sector. Japanese indexes show strong growth amid weakening yen and the statements of the President of Toshiba concerning the forecast of revenue growth by 15% in 2016-2017. We maintain a long-term negative outlook on the stock indexes in China, Japan and Australia.