Stock markets in anticipation of the resumption of dialogue between the US and China

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After yesterday’s burst of optimism in global markets, caused by delay of rates of trump on China and talk about the resumption of dialogue between the two countries, the interest for risk fades away again as investors digest the latest developments, including the publication of the unexpectedly disappointing data from China. The volume of industrial production in the country dropped by a maximum of more than 17 years, reminding market participants about the risks for the world economy.
Oil poured into the fire, the report from Germany in the second quarter GDP, the largest in the Euro area countries decreased by 0.1%. Although the result coincided with analysts ‘ expectations, it increased fears of a recession, the risk of which has increased in the last year, at the end of the third quarter, the economy contracted by 0.2% and barely escaped a technical recession.
It is not surprising that against this background, investors have not allowed myself to continue to purchase shares, which has affected the dynamics of the European platforms, which came out in the negative after rising indices on wall street and Asian markets. Meanwhile, the Russian indexes also moderately reduced, and this time the index Mosberg and has minimum losses due to the rollback of the ruble after yesterday’s rise in tandem with oil prices. Since this background is reduced by 0.35%.
In the short term, investors will continue to wait for news from the trade front, to follow the sentiment in the oil market, and to assess the latest statistics on GDP, industrial production and employment in the Euro area. Trading activity is likely to be low because of the presence of opposing factors.
Arseniy Dadashev,
Academy of management Finance and investment