23.07.2014 - Corporate reporting season continues to affect the movement of global indexes

U.S. market closed with the increase of stock indexes on positive data on inflation and growth in the number of house sales on the secondary market to 5.04 million, which is 0.13 better than the figure in May. In addition, investor’s sentiment has improved due to corporate reports, which mostly were better than analysts' forecasts, except for Coca-Cola and McDonald's. Today we expect the low activity of investors in connection with the lack of important macro publications. Substantial growth on the U.S. market is unlikely and we maintain our negative medium-term outlook for the U.S. indexes.

Sentiment in European markets improved slightly on weaker tension situation around Ukraine. Traders were disappointed yesterday because of decrease of the balance of industrial orders in the UK to 2, that was 7 less than analysts' forecasts. Today, the course of trading will depend on the data on retail sales in the UK (10:00 GMT) and consumer confidence in the euro area (14:00 GMT). European markets remain under pressure of weak data on industry in the region, as well as the possibility of reducing business activity in connection with the sanctions against Russia. Medium-term outlook for European markets remains negative.

Markets of Asia-Pacific region ended the trading session mixed. The Chinese market is growing on speculations regarding support for the housing market in the country by the government. So, the Chinese banks will offer mortgage loans with lower rates. The Australian market is supported by positive statements of mining companies, as well as the growth of quotations of construction companies. We maintain a medium-term negative outlook for the Chinese and Australian markets, but assume possibility of further increase of the Japanese stock indexes.

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