Stock market: the trump of war and trade do not allow the investors to decide

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No sooner had world markets to calm down and even count on the resumption of peaceful trade negotiations between the US and China, as trump once again provoked a flight from risk. In an attempt to equalize the trade balance, the odious Republican thinking about the increase in duties on Chinese goods at $ 200 billion to 25% instead of the previously announced 10%.
Investors are now anxiously waiting for the response of Beijing, which has hitherto always been the mirror. The pressure on the stock markets on that front, holding back corporate reporting, which still remains the center of attention. So, after mixed trading in Asia, European stocks opened mixed.
Unstable external background formed the conditions for the negative start of the session in the Russian stock market. RTS losing 0.3 percent, reflecting the opening of the ruble’s sharp gap down, which seems quite reasonable, given yesterday’s collapse of oil, the resumption of widespread demand for the dollar, the end of the tax period and the introduction of EU sanctions against a number of Russian companies.
The last factor is putting pressure on the domestic assets in General. The us dollar opened higher region 62,50€, and in a further reduction in price of oil may go on during the day, although the closer trading fed meeting activity may slow down.
The European currency fell the day before and remain under slight pressure Wednesday. In the short term dynamics of the main steam can revive the data on business activity in the manufacturing sector in Germany, Britain, the Eurozone and the United States.
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Nathan Lambert
Head of research,
Global FX