29.04.2016 - Uncertainty on the markets has increased
American stocks fell yesterday on the background of the negative impact the Bank of Japan’s decision not to take additional measures to stimulate the growth of inflation in the third largest economy in the world. In addition, the pressure on the indices had a weak statistics on the growth of US GDP in the 1st quarter of this year, according to which the country's economy grew by 0.5%, against the expansion of 1.4% in the previous quarter. Today will be published important data on personal income and consumer spending (12:30 GMT), as well as consumer confidence in the US (14:00 GMT). Given the weak macro-economic indicators, results of corporate reports season and an expected correction in commodity markets, we expect a decline of the US stock market in the next month.
European stock indices are falling on the background of a general deterioration in investor sentiment due to the lack of additional stimulus in Japan and the weak US GDP growth in the 1st quarter of this year. Today, was published the data, according to which the unemployment rate in the euro area fell in March by 0.1% to 10.2%, the index of consumer prices of the Eurozone in April was -0.2% vs. expected -0.1%. Spain's GDP grew by 0.8%, after rising by 0.8% in the previous quarter, while French GDP expanded by 0.5%, which is 0.2% more than in the 4th quarter of last year. The probability of correction on the markets has increased significantly, but we retain a positive medium-term outlook for European markets.
Markets in the Asia-Pacific region today were under the pressure yesterday’s decision of the Bank of Japan's not to extend the current stimulus measures in the country. In addition, weak corporate reports constrain growth. The Australian market was supported by gold, energy and commodities companies. In Japan today is a day off. Early next week, the dynamics of trading will affect the data on manufacturing activity in China. Risk of correction increased significantly in the markets of the region, but the medium-term outlook remains positive.