Stock indexes in Europe and the United States reduced early in the week

  • And
  • +A

European markets fall amid concerns about global growth, despite the optimism in Asia. The report, issued by the Bank for international settlements over the weekend, warns the volatility and sharp sell-off in the market that has not ended, and that the market is declining. The French CAC led the fall, dropping to -0,80% earlier in the session. The German DAX was close with a loss of about -0.75 per cent, while Britain’s FTSE about this. Report of the BIS, combined with weak data on retail sales and industrial production in China last week were the main causes of the current decline.
Us stocks fell to the lowest level since Feb. This is due to the nervousness of investors ahead of rate hike at the upcoming fed meeting. Great importance will be the press conference of the fed’s Powell, who said the prospects of the activity of the regulator in 2019. Monetary policy is already hindering the growth of the U.S. economy. President trump calls not to raise rates because the economy is suffering from geopolitical tensions and trade disputes. However, he himself initiates the raising of tariffs in international trade. Forecasts for global economic development for the next year decline.
Much will depend on us-China relations. However, China’s President XI Jinping was unable to offer anything positive in his long-awaited speech on the 40th anniversary of economic reforms in the country. Global equity markets fell after the Chinese leader made no mention of new initiatives. This contrasted with the recent news about the reduction of automotive tariffs and buying soybeans in the United States. And before the end of the 90-day truce is running out of time. Commercial relations of the United States with great Britain and the European Union after process output also remains open to question.
_____________
Yevgeny Abramovich
Analyst
Forex broker FXOpen