The US stock market fell on Friday after being unable to continue to grow and update historic highs last week. Negative for the market has become controversial corporate reporting of large companies, weak industrial production data from China and the unexpectedly weak statistics on the housing market in the country, where the number of new home sales totaled 482 thousand, compared with an expected 543 thousand. Today, the course of trading will be affected by the data on durable goods orders (12:30 GMT). It is worth noting that on Wednesday the Fed will make a statement on monetary policy, and on Thursday will be published data on GDP growth in the US for the second quarter. Our medium-term outlook remains positive.
European stocks continued to fall on Friday against the background of negative statistics from China, weak corporate reporting and reduction of the manufacturing and service PMI in the euro area to 52.2 and 53.8 against the expected 52.5 and 54.2, respectively. Today, a positive for the market was the increase in the index business sentiment in Germany up to 108.0, which is 0.4 better than expected. The growth of rate is caused by the success of the negotiations between Greece and creditors. The dynamics of trading of British market will be affected by the data on the balance of production orders (10:00 GMT). Tomorrow will be released the report on GDP growth in the UK in Q2. Our medium-term outlook remains positive and we look forward to a soon resumption of upward momentum.
Markets in the Asia-Pacific region showed a decrease except for the Australian market. The reasons for the collapse in the next Shanghai stock market were the slow steps on maintaining the market by the Chinese authorities. As a result, the index fell by 8.48%. It is worth noting the weak statistics on China's manufacturing PMI, which fell to 48.2 against the expected growth to 49.8. Volatility on the Chinese market is likely to remain at a high level in the near future. We expect growth on the markets of the region, after the stabilization of the situation in China.