Stock markets: a Trade war is gathering pace

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Futures in global stock indexes fall by 0.6-1% on reports that US authorities are planning to impose restrictions on Chinese investment in the United States. In addition, on the basis of us law international emergency economic powers (IEEPA), the United States intend to impose a ban on investments in certain sectors of the Chinese economy involved in the “Made in China 2025”. Thus, the US fight the illegal copying of American technology by Chinese companies.
Considering that on 6 July the US plans to introduce protective tariffs on Chinese goods in the sum of $34 billion, we can expect a retaliatory allegations of China. This will add the dollar and the yuan volatility during the week. Despite fluctuations in oil prices due to the assessment by investors of the effect of increasing oil production by OPEC from July until the third quarter of 2018, the Russian market will receive support through the active phase of the dividend period.
Last Friday, the market received an inflow of foreign liquidity in the amount of about $100 million Probably, the main role was played by the dividends of the savings Bank at 12 RUR per share. However, the dividend period will be followed by the conversion of rubles into dollars, which will weaken the position of the ruble in late June – early July.
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Viktor Veselov,
Chief analyst,
Bank “GLOBEKS”