The US stock market continued to decline amid weak corporate reporting. It is worth noting that yesterday was published statistics on the number of initial unemployment claims, which reached its lowest level since 1973 and totaled 255 thousand. The improvement in the labor market increases the likelihood of the Fed raising interest rates in September or December, which is negatively displayed on the stock market. Today, the dynamics will depend on the data on the manufacturing PMI (13:45 GMT) and new home sales in the US (14:00 GMT). We expect the improvement of statistics on the housing market, which will support American investors. Our medium-term outlook is positive, but we expect a fall in the near future.
Major European stock indexes finished yesterday's trading session near the previous close. A negative for the market is weak corporate reporting season, as well as the decline of the US stock markets. British investors negatively perceived the news of the fall of retail sales in the country by 0.2%, against an expected increase of 0.4%. Today, investors were disappointed by weak statistics on manufacturing and service PMI in the euro zone, which fell to 52.2 and 53.8 respectively, against the forecast of 52.5 and 54.2. We expect the resumption of growth in the European equity markets and maintain the medium-term positive outlook.
Markets in the Asia-Pacific region today have decreased in connection with the publication of weak statistics from China and the deterioration of investor sentiment on global markets on weak corporate reporting. So, China's manufacturing PMI fell to 48.2 in July against 49.4 in June and analysts' forecasts of 49.8. The comparable figure in Japan rose to 51.4, which is 0.9 better than market expectations. The Australian market is under the pressure from falling commodity prices. The economic situation in China remains a major factor that affects the markets of the region. We maintain a positive medium-term outlook for the markets of the region.