Stock markets: investor Sentiment changed dramatically

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The mood of global investors has changed dramatically the night before, and on Friday, European markets opened in negative territory after an impressive drawdown Asian indices.
It affects the nervousness of the players on the background of another “exchange of courtesies” between trump and his colleagues at the G7 – trading controversy is definitely far from being resolved. Flight from risks has also affected the emerging markets, where currencies are sold and bonds. Russian benchmarks, following the General sentiment that started in the red zone, with the RTS losing almost 0.7 percent, reflecting a further weakening of the ruble after yesterday’s decline.
The pair dollar/ruble has updated the highs of June, moving to around RUB 63 reduce the attractiveness of the Russian currency in terms of the flight of investors from the assets of the emerging segment, as well as amid signs of easing pressure on the dollar, which recovered in tandem with Euro after four days of drawdown.
The risk to our currency intensified with an eye to the corrective mood in the commodity segment, where a barrel of Brent resumed its decline after the dash to the highs from early June. Trade now centred around the 77 mark, closing above which seems unlikely, given the thrust to lock in profits before the onset of the weekend.
Today is not a scheduled major economic releases and the markets will be focusing entirely on the statements of the authorities during the summit “the Big seven”. Risky assets are likely to remain under pressure and the dollar can win back some of the losses incurred since the beginning of the week.
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Nathan Lambert
Head of research,
Global FX