Stock market: Investors will start to regain a meeting of the presidents of the US and Russia

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After growth of 2-3% in the last two days of the II quarter of global indices lawfully be adjusted down. On 6 July, the United States plans to introduce new duties on Chinese goods in the sum of $34 billion, which is now forcing investors to go into defensive assets: U.S. government bonds and the dollar because you can expect a retaliatory allegations of China. It will add volatility to the dollar and the yuan in the week. Plus published key statistics on the labor market in the US, final manufacturing PMI from ISM, the minutes from the June FOMC meeting.
The consensus forecast assumes stable results relative to data for may. This will help the dollar to strengthen. In turn, the protocols will clarify the rate of increase of the upper level of the fed funds rate before the end of 2018. In favor of the ruble to play high oil prices, despite the next tweets of the US President who wants to lower high prices, because they increase the cost of the final product within the United States.
Positive expectations of investors from the meeting of the Presidents of the United States and Russia in mid-July together with a dividend period now create the influx of foreign liquidity into the Russian market. We do not exclude that the flow will increase, and the stock market will go up in anticipation of reaching any agreement between the US and Russia since the crisis in 2014.
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Viktor Veselov,
Chief analyst,
Bank “GLOBEKS”