Major U.S. indexes ended the last trading session of the week with growth to levels near historic highs. The reason for the growth was positive corporate news of Hewlett-Packard Company and the data on the growth of new home sales in the U.S. in April to 433 thousand, against analysts' forecast of 426 thousand. Investors did not build up position due to the long weekend. Today in the United States celebrate Veterans Day and stock markets are closed. Tomorrow is expected the increase of volatility on the background of release of a large block of macroeconomic statistics on durable goods, house price index and consumer confidence. We keep medium and long term negative outlook for the US market.
Major European indexes rose slightly on the background of statistics from Germany and the USA. Thus, GDP growth in Europe's largest economy totaled 0.8% in Q1 which coincided with the forecasts of analysts. At the same time, a business climate index decreased in Germany in May to 110.4 versus 111.2 in April. Support for bulls was provided by the data on the U.S. housing market. The consumer confidence index in Germany, which was released today, remained at 8.5 and did not significantly affect the mood of traders. Investors expect additional measures from the ECB to deal with low inflation, which can be announced on June 5. We maintain a medium-term negative outlook for the European indexes.
Markets of Asia Pacific region show positive dynamics amid growing technology stocks in China. In addition, the Chinese market reacted positively to the intention to reduce restrictions on the housing market in country's largest cities. The Japanese market continues to grow amid a weakening yen and Australian investors are buying shares of mining companies, despite a drop of iron ore prices, which may continue in the summer. We maintain our negative outlook on the stock indexes of China, Australia and Japan.