Stock market: Washington has spooked investors trade wars

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Global stock markets again true risk aversion. Once again the calm in the markets broke the Washington, which made the next salvo of a trade war with China, announcing a 10 per cent duty on the import of Chinese goods with a volume of $ 200 billion. Beijing has said it will respond in a similar vein, repeating that a trade war is against the interests of the world’s supply.
After drawdown of the indices in Asia, European markets opened in negative territory utyanuv for a Russian benchmarks. Index Mosberg and RTS in the first hour of trading, losing an average of 1%, feeling additional pressure from the oil market.
Brent is developing a bearish momentum testing the mark 78. Until the pressure looks reasonable, but sales may be accelerated if the arrival of American players commit arrived will continue. To weaken the local pressure on the quotes may official report of energy, the if confirms the massive decline in crude oil inventories in the US last week.
The ruble opened with a gap down, which is not surprising, given the renewed flight from risk and a cheaper black gold. Taking advantage of the situation, the dollar is trying to recover from the lows of more than a month ago, and is back above the level of RUB 62 Potential weakening of the ruble in the coming days will be limited because of optimistic expectations about the upcoming meeting trump and Putin in Helsinki.
Forex main currency pairs are marking time in close ranges. Important economic data for today is not declared. Except that States will publish data on producer price as a “warm up” before tomorrow’s release of consumer inflation, which will have a significant impact on sentiment on the dollar in light of the recent weak performance of wages. In the near future, currency will focus on the speeches of key representatives of the Central Bank, including Carney and Draghi.
Nathan Lambert
Head of research,
Global FX