25.05.2015 - The fall of the yen supported the Japanese index
US stock indexes showed a decline amid the publication of statistics on the core consumer price index, which rose in April by 0.3% against the forecast of growth by 0.2%. At the same time, investors have fixed position before the long weekend. It is worth noted, that the increase in inflation increases the likelihood of raising interest rates by the Fed, which negatively displayed on stock indexes. Today, in the US is a holiday. We keep medium-term positive outlook for the US stock market, but note the limited growth potential in the near future.
Major European stock indexes finished the last day of the trading week near the previous close levels. Investors do not want to open new positions and took profits after a strong growth over the week. The reason for optimism was the statement of Benoit Kere on enhancing asset purchases under the program of quantitative easing in the Eurozone. The lack of consensus on the restructuring of Greek debt also weighs on investor sentiment. Today, in most countries of Europe is the day off and traders will return to the market only tomorrow. We keep medium-term positive outlook for the market in the region due to the positive effect of the quantitative easing program.
Markets in the Asia-Pacific region showed strong growth. The Japanese market is supported by the fall of the Japanese yen, which traditionally leads to an increase in the shares of exporters. Japan's trade deficit totaled 0.21 trillion in April against the forecast of 0.38 trillion. The Chinese market continues to grow after the signing of an agreement between the regulators in Hong Kong and China, which allows cross-border investments. We expect a further increase on the markets of the region in the medium term.