Stock markets in Europe under pressure of geopolitics

  • And
  • +A

European stock market, which is still under pressure of a developing trade conflict between China and the U.S., will continue to monitor the geopolitical situation, world oil prices and corporate news.
In early August, U.S. authorities confirmed their plans to impose duties of 25% on Chinese imports of goods and services volume of $200 billion a year. The Chinese side responded by saying that they are ready to introduce higher import duties in the amount of up to 25% on 5207 items from the USA a volume of about $60 billion.
In addition, the United States has renewed sanctions on Iran. In turn, the European Union has said it will block the action of the American sanctions to protect the interests of their companies.
European traders will continue to monitor the publication of financial reports of the largest companies in the region. Published in recent days, reports have been mixed.
Another landmark for the European markets will be the global dynamics of oil prices. Earlier it became known about the oil reserves in the U.S. last week fell by 6 million barrels, while the expected decline of only 3.3 million barrels. While gasoline inventories rose 3.1 million barrels, distillates — by 1.8 million barrels.
On oil prices impact the Outlook for oil production in the United States. The energy information administration of U.S. Department of energy (EIA) lowered its forecast for the extraction of crude oil in 2018, to 10.7 million barrels per day. In 2019 the EIA forecasts production in the United States at 11.7 million barrels, while the expected level was 11.8 million barrels.
However, a positive for oil prices is the renewal of us sanctions against Iran, as investors expect a reduction in the supply of Iranian oil to world markets. Rising oil prices can lead to purchases of shares of such companies in Europe, British BP and French Total.
Ivan Marchena,
GK Forex Club