US stock indexes fell after yesterday's publication of weak data on GDP growth. Thus, the economic expansion slowed to 0.2% in the first quarter, against growth of 2.2% in the 4th quarter of last year. The reason for the deterioration of the decline was consumption growth slowdown to 1.9% from 4.4% in the previous quarter. Reduced investment and a drop in exports also led to a reduction in the growth rate. The Fed said that the slowdown is due to temporary factors, growth will resume in the next quarter. Today, the dynamics will depend on the data on the labor market and personal spending and income of consumers for March (12:30 GMT). Our medium-term outlook for the stock market remains positive, but in the near future we may see a correction on the market.
European stocks showed a negative trend against the background of the euro strengthening after the publication of weak data on US GDP growth in the first quarter, as well as due to the global deterioration in investor sentiment. Today, the euro continued to rise against the background of positive statistics on the growth of Spain's GDP by 0.9% in the first quarter against 0.7% in the 4th quarter of last year. At the same time, the number of unemployed in Germany fell by 8 thousand in April. Today, the course of trading will be affected by the data on the unemployment rate and the consumer price index in the euro area (09:00 GMT). Considering the positive effects of the program of quantitative easing in the Eurozone, we maintain a positive medium-term view, but expect a further fall in the index in the near future.
Markets in the Asia-Pacific region showed strong decline amid deteriorating investor sentiment due to the weak data on US GDP growth. Industrial production in Japan in March fell by 0.3%, vs. expected decline by 3.4%, while the number of housing starts unexpectedly rose by 0.7% against the expected decline of 1.8%. Strong volatility in Japan will continue tomorrow in relation to the publication of unemployment data and the index of consumer activity. In China today is a day off. Our medium-term outlook for the market in the region remains positive, but in the near future we can see the continuation of the correction.