Financial markets are full of spring optimism
The markets are full of spring optimism. They cannot move forward or fall or be adjusted, they are not going. Yesterday, the wall street greeted the new prospects of trade wars, besides, China has decided to reconsider its positioning in the world.
In the beginning of this week, the official Beijing said that is not going to soon abandon the “special and differential treatment”, which is used as a developing country in the world trade organization. In fact, this status allows the PRC to provide state subsidies to Chinese enterprises in agriculture and to raise barriers for foreign investors and enterprises in the domestic Chinese market. It’s very unnerving Washington. It is known that the United States believes the WTO obsolete organization, as many of its members long ago having defined itself as a developing country, sitting on the neck of the global economy and benefit status. And China does not seek to absolve themselves of this status, this means that before the conclusion of a foreign trade deal of the century is still far.
The deployment of the new front foreign war, now with the EU, and another attack in Iran do not promise the markets positive. Donald trump has brought the Islamic revolutionary guard Corps (IRGC), an elite formation of the armed forces of Iran, in the list of terrorist organizations. Thus, he created a precedent in the history of the world, because the United States first made a list of the operating unit of the armed forces of another country. This can lead to retaliatory action from Iran. US Secretary of state Mike Pompeo called on NATO to adapt to combat emerging threats. What was meant, and Russia’s military intervention in the Affairs of Venezuela, and the rivalry with China, and cyber threats from all sides.
The main intrigue of this year may be not a exit of England from the composition of a United Europe. I believe, the European economic area, the new paradigm may be the intention of the official authorities of the EU and China to reach agreements on joint investment projects.
So the geopolitical situation for the world economy with the onset of spring has not become warmer. Most likely, global investors will have to switch to corporate reports of the American corporations, especially this week kicked off the reporting season for the first quarter. Traditionally it starts with paper banking sector.
79 of the companies entering into calculation of Index S&P 500, lowered its forecast for first-quarter profit. And stock analysts and economists also expect reduction in corporate profits of most organizations.
__________________ Roman Blinov,
The head of the analytical Department of the company,
“International financial center”