Stock market: Investors are scared of another trade war

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Yesterday’s close of trading on wall Street was marked by another decline in interest in risky assets and investors are in a hurry to get rid of stock and other assets that they believe are currently more risky for yourself. The reason for the wave of sales on the American stock market became the next concern that the trade confrontation between the US and China, will have a negative impact on the global economy. Of course on wall Street, a wave of sales, and major stock indices closed in negative territory.
Moreover, these sales did not prevent the Index value of the U.S. dollar set a 17-month high on the next wave of demand for cash in the portfolios of investors, which was the reason for the growth of the U.S. dollar to the levels in of 97.75 – of 97.50 points. Morning trading in South-East Asia and the Pacific region have been quite mixed, and the demand for American dollars, for the opening of European markets weighed on the single currency, and that under the yoke of the dollar, again tried to fall to the level of 1.22 euros per one U.S. dollar, but so far has resisted against the American.
Yesterday sales were not only the stock exchanges, fell, and the commodity market, as slowing global economy threatens and reducing energy consumption, which naturally led to lower prices for “black gold”.
The Russian ruble and the Russian stock market naturally responded to the changing global financial environment, and the opening on the Russian financial market is with minor notes. The ruble is a little bit away from the trend of temporary strengthening in the Wake of falling prices for raw materials and a General attitude of rejection of risk by global investors. Also, the disabling of the Central Bank of Iran from the international system of cash payments, has a psychological impact on the minds of investors and, in General, faces a new round of international tensions, and the Russian ruble is a Prime example of new possible sanctions from the side of official Washington.
So, after two weeks of correctional growth in the stock market in the US, we again have the opportunity to slip into another wave of rejection of risk-weighted assets, in addition, held in Paris last weekend events dedicated to the 100th anniversary of the First World War, revealed a political breakthrough to new realities, partly upset global investors and they once again decided to recall about global risks and took the thesis of “the flag”.
However it was quite close to the summit of countries in the format of G-20, which must be held another round of talks between the US and PRC on foreign trade war between countries, and apparently, we will become hostages of speculation on the subject more than one day, although the summit is not far off.
Roman Blinov,
The head of the analytical Department of the company,
“International financial center”