24.06.2015 - The Japanese market has reached its highest level in 18 years

Major US stock indexes showed modest growth on the background of improved sentiment in connection with the hopes of reaching a consensus on reforms in Greece which will allow to restructure the country's debt. Positive data was also the strong growth in sales of new homes in the US to a seven-year high. Thus, the figure rose to 546 thousand in May against the forecast of 524 thousand. At the same time, growth was restrained by weak data on the volume of orders for durable goods, which fell in May by 1.8% that is 1.2% worse than expected. Today, the dynamics will depend on the publication of the final report of US GDP growth in the 1 quarter. Improving previous estimate can support the growth of stocks, but at the same time increase the likelihood of the Fed raising interest rates in September. We expect growth at the US stock market in the medium term, but do not exclude a correction in the near future.

Major European stock indexes continue to rise amid growing optimism due to the expectation of an agreement between Greece and its creditors. Earlier, European stock indexes fell heavily due to fears of default of Greece. At the same time investors have been pleased with the news on the growth of the manufacturing and service PMI to 52.5 and 54.4 respectively. Today was published data on the index of business sentiment in Germany from Ifo, which showed a decline to 107.4 in June, against the forecast of 108.2. The movement of stock indexes in Europe in the near future will depend on the news of the Greek crisis. Our medium-term outlook remains positive due to the positive effect of the quantitative easing program and the decline of the euro.

Markets in the Asia-Pacific region showed strong growth against the backdrop of optimism about Greece. Publication of minutes of the previous meeting of the Bank of Japan on monetary policy did not strongly affect the course of trading. It is worth noting that the Japanese market has shown strong growth since October, with increased purchases of assets from pension funds, as well as by reducing the yen. As a result, Japanese Nikkei225 index has reached its highest level in 18 years. Shares in China also continued to rise amid growing US indexes and expectations of growth on the stock markets due to the stimulus measures by the government. We expect growth on the markets of the region in the medium term, but do not exclude the price correction in the near future.

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