The U.S. stock market fell yesterday in connection with the agreement of economic sanctions by the 28 EU countries against Russia. In addition, on the market we see the weakness of bulls despite the fact that 77% of companies in the S&P 500 that have already reported, showed better results than expected. Many traders yesterday decided to fix positions ahead of important events that will take place today. So, we should pay attention to data on changes in the number of jobs in the private sector in the U.S. and preliminary data on U.S. GDP growth in the second quarter (12:30 GMT). The focus will also be on the Fed's statement on monetary policy in the country. We expect the U.S. markets to reduce in the medium term, and today we should expect a higher level of volatility.
The European indexes showed a slight increase, despite the introduction of the next package of economic sanctions against the energy, financial and military sectors of the Russian economy. Investor sentiment improved thanks to positive data on consumer confidence in the U.S., but traders were in no hurry to build up positions before today's release of U.S. data and the Fed's statement. Given the weak economic performance in the euro area and the overvaluation of the market, we maintain the medium-term negative outlook for the European indexes.
Indexes of the Asia-Pacific region continue to grow for a fourth consecutive session in anticipation of the statement of the U.S. Federal Reserve. The Japanese market is supported by positive corporate reporting of Honda, as well as the devaluation of the yen. The Chinese market today was supported by a statement from Moody's with respect to the expected growth of China's property market in the second half, and the leaders of growth in the Australian market again were the mining companies, whose growth is supported by improvement on the iron ore market. We maintain the medium-term negative outlook for the Chinese and Australian markets, but expect the growth of indexes in Japan.