U.S. stocks fell yesterday, despite the positive figures of the housing market in the United States. Thus, new home sales rose by 16.9% compared with May of last year and totaled 504 thousand. Analysts were expecting sales growth by 442 thousand. The index of U.S. consumer confidence also rose to 85.2, against the forecast of 83.6. In connection with the overbought market, the decline may accelerate on the background of fixing long positions. Investors also negatively evaluate the difficult situation in Iraq. Today, the mood of investors will depend on the final figure of U.S. GDP growth in the 1st quarter and the volume of orders for durable goods (12:30 GMT). We do not exclude the continued growth in the short term, but keep medium-term negative outlook on the U.S. market.
Major European stock indexes ended the trading session near the previous close. Negative for the market was the decline in the index of business sentiment in Germany in June to 109.70, against the forecast of 110.3. Decrease is caused by the deterioration of relations with Russia. The consumer confidence index in Germany increased by 0.3 to 8.9. European stocks will likely continue to decline in the medium term following the U.S. market.
Negative sentiment on the U.S. market has led to the fall of indexes in the Asia-Pacific region. In leaders of falling among Chinese companies are banks and construction companies. Statement by the Prime Minister of Japan, Abe regarding corporate tax cuts did not improve the mood on the market, because it has already been considered in the prices. We expect the resumption of growth on the Japanese market in case of continued devaluation of the yen, but keep medium-term negative view on Chinese and Australian markets.