29.07.2016 - Data on US gross domestic product may increase the volatility

American stocks continued to consolidate around the previous closing levels. The focus remains on the corporate reporting season in the country, during which we see the contradictory news. Thus, automakers shares fell after the release of weak statistics of Ford Motors, but the technology sector stocks continue to please the market. Today, we expect the volatility growth in connection with the publication of data on the US GDP growth in the second quarter (12:30 GMT). We should also pay attention to statistics on Chicago’s manufacturing PMI (13:45 GMT) and the index of consumer confidence in the US (14:00 GMT). Our medium-term outlook for the US market remains negative.

European stocks today show a different direction. The reason for this movement is the publication of a large number of important statistics. So, the euro area GDP grew by 0.3% in the second quarter versus 0.6% in the previous period. France's economy showed no growth despite of the forecast expansion by 0.2%. Spanish GDP grew by 0.7%, in line with expectations. The unemployment rate in the eurozone was 10.1% in June, while the consumer price index rose by 0.2% for the year against the forecast of 0.1%. Strong influence on the dynamics of trading can have news from the US. We forecast a drop in European stock markets due to the negative impact of the UK’s exit from the EU.

Markets in the Asia-Pacific region today are moving in different directions. The main event was the statement the Bank of Japan on monetary policy, which has led to a decrease in the yen, which in turn displays negatively on investors’ sentiment. It is worth noting that the dollar lending program has been expanded to 24 billion against the current 12 billion. Retail sales in the country fell by 1.4%, which is 0.2% below the forecast, the core consumer price inflation declined to 0.4% in June compared with the previous year. On Monday will be published data on the manufacturing PMI in Japan, China and Australia. Volatility remains elevated and the risk of falling remains high.

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