Stock markets diligently tried to grow before the holiday in the United States
The markets diligently tried to protect their positions ahead of holidays in the USA. U.S. indices finished trading environment virtually unchanged, losing the beginning of the week about 4%. The shares of companies of the energy sector shrank by 1-2%, after oil, after the failure of 6% a day earlier.
Today, the United States rests, and Friday will be a shortened trading session, with the bulk of players will stay away and will occupy a Supervisory position.
As we noted earlier, despite the negative dynamics of the favorites of the market participants are far from panicking. The VIX index last month is trading near 20 points, while maintaining positions, despite the decline in shares.
The softening of rhetoric of the fed in the last week turned the dollar to decrease, although this is not yet reflected in the stock price. Traders with stocks still scared of the possible challenges Apple with sales and concerned about the exhaustion of the effect of tax reform on economic growth.
The foreign exchange market are often the first to respond to the changing external environment – and it has already given its verdict on the change of sentiment of the fed throwing the dollar from multi-month highs. The development of this trend is to mitigate financial market conditions, increasing support for the stock.
Moreover, for the past two weeks, falling yields on U.S. government bonds. The yield on 10-year treasuries fell from 3.25% to 3.06%. This is due, most likely, with the revision of expectations of fed policy. Now the tone of the statements does not look as sharp and is able to demand return of the stock if the trend will be stable.
Following the decline of yields in the debt market of the United States, the pool of liquidity has once again become slowly filled. It is possible that this change of trend is not very noticeable, but the effect should soon appear that can seriously change the mood in stock markets. Especially if not implemented the risks are extensions of trade wars and sharp economic slowdown.