31.07.2014 - Markets do not want to grow despite the data on GDP growth in the United States

American markets were not able to grow despite the positive data on GDP growth by 4.0% in the second quarter against the forecast of 3.1%. Data on the labor market, where the number of jobs increased by less than expected and reached 218 thousand which is 16 thousand worse than the forecast was partially offset by gains from GDP data. In the Fed stated about another reduction in the volume of asset purchases to 25 billion dollars, and indicated the improvement of the situation on the labor market and the weakness of the housing market. Interest rates will not rise for a long time. Today we should pay attention to the statistics on the labor market in the United States (12:30 GMT). We maintain a medium-term negative outlook on the American market.

June 5, 2014 USSPX Graph

Major European indexes continued to decline, despite the positive data on GDP growth in the United States. Markets are influenced by weak corporate reporting season and another tightening of sanctions against Russia, which is likely to impose retaliatory measures that will be displayed on investor sentiment in the region and will have negative consequences for the economy of the Eurozone. Today, trade dynamics will depend on the data on unemployment and the consumer price index in the euro area. We maintain our negative medium-term outlook for European indexes.

Markets in the Asia-Pacific region have not changed today against the backdrop of the US GDP data and the Fed's statement. The fall of the yen failed to support the growth of the stock market of the country, in addition, investors have negatively perceived message about the default of Argentina. The Chinese market continues gradual growth and traders expect the publication of data on the industry in China, which will help to determine the future direction of the market. Australian investors today were disappointed by the weak data on the number of permits for new housing construction, which fell in June by 5.0%, compared with growth of 10.3% in May. We maintain a negative medium-term outlook for the markets in the region.

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