24.06.2014 - Market growth has stopped
Trading session on the U.S. stock market ended practically without changes of major indexes. Positive for the market was the data on the growth of home sales in the secondary market to 4.89 million that is 0.15 million more than expected. Manufacturing PMI also rose to 57.5 in June from 56.4 in May. Data on new home sales and consumer confidence index (14:00 GMT), can change the mood of investors on the market. Due to the reduction of quantitative easing and the absence of significant fundamental incentives, we expect the correction on the U.S. stock market by 10-15% in the medium term.
Major stock indexes in Europe fell yesterday against the background of fixing positions after prolonged growth in the previous days and the inability to overcome the resistance levels. In addition, investors were disappointed by statistics manufacturing and service PMI in the euro area. Thus, the rates dropped respectively to 51.9, which is 0.3 worse than the forecast and to 52.8, against 53.4 expected. Today is expected to continue the downward trend due to the lack of important data from the Eurozone. We keep a medium-term negative outlook for European stock markets.
Markets in the Asia-Pacific region finished the day with the growth of indexes. Reduction of the index of leading economic indicators in China to 0.7%, which is 0.3% worse than the forecast could not change the positive mood on the market. In Japan, investors expect the announcement of the third stage of the reform program of Prime Minister Abe. In Australia, a positive was associated with the restoration of prices for iron ore and copper in the world. We keep positive outlook for the Japanese market, but expect a decrease in quotations in China and Australia in the medium term.