Global stock markets recovered after a decline the day before by 2-3%

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World equities recover after a decline the day before by 2-3% due to the political crisis in Italy. Investors believe that the risks of Italy’s exit from the EU is exaggerated, so the yield of US Treasury bonds and German securities increases and the dollar weakens to the Euro at 1.25% to 1,167 and the ruble 1.2% to 62. However, we believe that it is a short correction, because on Thursday, investors expect to see stable values for the index of Americans personal consumption (PCE) at the level of 1.88 and 1.9% year-on-year.
However, the Beige book, the fed indicates that growth in economic activity in the United States in April and may: there is an increased demand for loans, the growth of employment is moderate, the price increase is negligible, but consumer spending is weak, retail sales, too. Waiting for the results of spending Americans will play a leading role in the definition of the trend of the dollar.
Stable data will support the dollar, at low values the dollar weakened against the Euro and will continue this trend on Friday. As investors have already received a signal from ADP that statistics on new jobs may be weak. Against this background, the ruble will be supported.
Viktor Veselov,
Chief analyst,