Stock markets: How long will the lull?
After sales early in the week, the stock markets of the world lull. After the rebound indices on wall street on Wednesday European markets settled in positive territory. Using the voltage drop and the retreat of the panic, the Russian market continues recovering. RTS feels more confident due to the strengthening of the ruble, adding 0.35 per cent in the first half of the day.
The ruble is trying to take the dollar under the mark of 65 rubles, but the movement as a whole, are more reserved.
Despite improved investor sentiment, the fundamental picture remains negative in light of the recent escalation of trade conflict between the US and China, especially after the devaluation of the yuan. So the current rebound rather like the calm before a new round of sales, which are realized in the case of receipt of fresh negative signals from the trading front. Investors have almost lost hope for the deal between Beijing and Washington before the end of the year, despite recent statements by Larry Kudlow on trump’s willingness to continue the dialogue with si.
For the Russian market is an additional risk factor in the dynamics of oil prices. Brent noted the new lows in the area between 58.50 dollars a barrel and does not give clear signals of recovery. Despite the fact that the US continues to receive positive industry statistics pointing to a decline in the activity of kancevica, quotes can not develop growth momentum, focusing on the war and its consequences for global energy demand. If in the near future will not appear the catalyst, Brent is able to return at least above the level of 60 dollars, is expected to fall to new lows.
Academy of management Finance and investment