Trading on the American stock markets ended with the growth of the major stock indexes. Positive sentiment could not spoil the data on reduction of GDP by 2.9% in the first quarter of 2014, the worst result since the first quarter of 2009. Analysts predicted a drop by 1.8%. Durable goods orders in May decreased by 1.0% due to the decline in orders of military goods. Statistics on the services PMI in June compensated the negative on the market. Thus, the figure rose to 61.2, compared with an expected 58.6. Today, the mood of traders will depend on the statistics on the number of initial unemployment claims and personal income and spending of consumers (12:30 GMT). We are waiting for the resumption of the fall on the U.S. markets.
Major European indexes dropped significantly yesterday due to worsening of the situation in Iraq where is growing the number of victims. In addition, investors negatively evaluated decline of U.S. GDP in the first quarter. Increase in the index of consumer confidence for July in Germany to 8.9, which is 0.3 better than expected, could not lead to the growth of stock markets in Europe. It is worth recalling that tomorrow is the deadline of truce in Ukraine, and we can expect a new increase in tension in the region. In the medium term, markets are likely to continue to decline.
The markets of the Asia-Pacific region mainly rise on positive investor sentiment in the United States. Japanese companies have continued to rise in price despite the strong yen. On the Chinese market, most buyers still assess the price in the housing market as expensive or unavailable. The Australian market is growing slightly amid rising vacancy rates by 2.5% compared with the previous quarter. We expect a decline of Chinese and Australian stock market in the medium term, but the Japanese indexes can continue to rise in case of the yen devaluation.