29.08.2014 - Ukrainian crisis is making a new spin

American stock market fell yesterday despite the positive statistics on the labor market where the number of initial unemployment claims fell to 298 thousand, while the growth of the country's GDP in the second quarter was 4.2% compared with an expected 3.9%. The main reasons for the decline is the lack of strength of bulls and the deterioration of the geopolitical situation in connection with the events in Ukraine, where President Poroshenko stated about the invasion of Russian troops on the territory of Ukraine. Today we should pay attention to data on personal spending and income of consumers (12:30 GMT), and the index of consumer confidence in the United States (13:55 GMT). We maintain a medium-term negative outlook on the American market.

European stocks fell yesterday on the growing number of unemployed in Germany by 2 thousand compared with an expected decline of 6 thousand. At the same time positive for British traders was the message on the growth of the balance of retail sales in the country to 37, which is 10 better than analysts' forecasts. This news failed to neutralize negative from the deteriorating situation in the east of Ukraine. Today, special attention should be paid to data on the consumer price index and the level of unemployment in the Eurozone (09:00 GMT). We maintain a medium-term negative outlook for European stock indexes.

Markets in the Asia-Pacific region have slightly changed. Weak data on Japan's economy disappointed investors. So, household spending fell by 5.9%, industrial production grew by 0.2%, which is 1.0% worse than the forecast, unemployment rose by 0.1% to 3.8%. Only retail sales rose by 0.5% compared with an expected decline of 0.1%. The Chinese market has been among the growth leaders. On Monday you should pay attention to the statistics on the manufacturing PMI in Japan, China and Australia. We maintain a medium-term negative outlook on most stock markets in the region.

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