23.06.2014 - Statistics from China improved the mood of investors
U.S. stock indexes have changed little amid a lack of important macro. It should be noted that the stimulus for the growth of indexes was the Fed's statement that interest rates will remain at a high level for a long time. At the same time, further increase is limited. Today we should pay attention to the manufacturing PMI (13:45 GMT) and home sales on the secondary market. We expect that further growth soon will stop and on the market will begin a serious correction.
Major stock indexes in Europe finished the last trading session of the week with mixed dynamics. Markets of France and Germany have decreased despite the positive data on the euro area balance of payments surplus, which rose to 21.5 billion, 1.1 billion more than the forecast. At the same time, the consumer confidence index remained at -7, indicating the negative expectations of consumers in the euro zone. British stock market continued its positive dynamics of Thursday. Today will be published the report of the Bank of England on the state of credit market (8:30 GMT), as well as data on manufacturing and services PMI in the Eurozone (08:00 GMT). We maintain our negative outlook for European stock markets.
Markets in the Asia-Pacific region ended the trading session with a minor change despite the positive data on the manufacturing PMI in Japan in June to 51.1, against 49.9 in May, and in China to 50.8, compared with an expected 49.7. An index value above 50 indicates acceleration of growth in the sector. The Australian market also supported the rise in prices for iron ore, copper and gold. We expect continued growth on the Japanese market in case of further depreciation of the yen and the decline of Chinese and Australian market.