Oil and stock markets started Monday growth

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On Monday on stock markets Asian investors moved to widespread purchases, fueling hopes for a de-escalation of the trade conflict between the US and China. Missile strikes in Syria, which was very controversial, yet mostly ignored by the markets. Currency traditionally, Monday mornings are reserved. Dollar slightly up in tandem with the yen, but overall the look is hesitant, fearing a new attack from the geopolitics.
Today is not scheduled important economic events, although traders may be food for thought. The Euro may react to the statements of the representatives of the ECB’s Constancio and Praet, if they raised the topic of monetary policy and the economic Outlook for the Eurozone. However, the impact of their review will be of a local character.
Much more concern currency markets will attract the release of the last fed meeting, at which the controller expected increased cost of credit. If the dollar does not get a “hawkish” signals, and the probability of such a scenario is big, the bulls will be disappointed. However, any illusions that buyers of the American currency now do not cherish, realizing the magnitude of the potential consequences of the escalation of trade confrontation between Washington and Beijing.
Today you should pay attention to the updated IMF forecast on the world economy and individual countries. If the estimates will reflect risks of a trade war, it will have a negative impact on the dynamics of higher-yielding assets.
The oil market showed some improvement of mood. Players are buying a depreciating asset that was subjected to aggressive sales last Friday. Brent tries to gain a foothold above the level of 67 testing the area of 67,40, a breakthrough which will open the way to 67,70 and further – to 68. However, the price growth potential at this stage is limited because of continued concerns about a trade war, and amid growing drilling activity in the United States to the maximum in may 2015.
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Sergey Kostenko,
Investment analyst
GLOBAL FX