US stock indexes showed gains in the first trading session of the week, after falling last week. The reason for the increase were the technical factors and statistics on the growth of income of consumers by 0.4% in February, which is 0.1% better than analysts' expectations. Today, the course of trading will be affected by the statistics on an index of home prices in 20 major US cities (13:00 GMT), Chicago manufacturing PMI (13:45 GMT) and the index of consumer confidence in the US (14:00 GMT) . The central event of the week will be the release of data on the US labor market, improvement of which will lead to an increase in the probability of the Fed raising interest rates in June, which was negatively displayed on the stock market. We maintain a positive medium-term outlook for the US stock market.
Major European stock markets showed strong growth yesterday and can show the best quarter since 2009. The number of permits issued for mortgage lending in the UK in February totaled 62 thousand that is 1 thousand better than the previous figure. Today, positive news were the reduction of retail sales in Germany by 0.5%, which is 0.4% better than expected, reducing the number of unemployed in Germany to 15 thousand, compared with an expected 10 thousand. GDP growth in the UK unexpectedly was 0.6% in the 4th quarter of last year, which is 0.1% better than the previous estimate. Eurozone unemployment rate rose to 11.3% in February, which is 0.1% more than in January. Deflation in the euro area was 0.1% vs. anticipated 0.3%. We expect continued growth on European stock markets in connection with the program of quantitative easing in the Eurozone and investment inflow in the region.
Markets in the Asia-Pacific region showed growth on the statement by the People's Bank of China's willingness to maintain the growth of economy. Earlier, China announced support for industrial and housing sectors of the country that show a slowdown in growth and a negative impact on investors' expectations. The Australian market was under pressure from falling prices for iron ore, which is the main export commodity of the country. The fall of the yen supported the demand for Japanese exporters. Tomorrow dynamics of trading in the region will depend on the statistics on manufacturing PMI in Australia, Japan and China. We expect further growth of indexes in the region in the medium term.