Stock markets: Investors have their fingers on the pulse

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After the vague dynamics of the American stock indices and mixed Asian session, European markets opened on a positive surprise. Leading indexes of Italy and Spain. Not far behind, and Britain’s FTSE 100, which feeds on the weakness of the pound. The British currency continues to fall, updating the 7-month low against the dollar and is approaching the 1.31 mark ahead of today’s Bank of England meeting.
Markets, in fact, do not expect anything extravaganza from the British Central Bank. Since the publication of the inflation report, consumer prices showed no signals that would precede a more aggressive rate increase. So most likely Carney will choose a neutral stance and try to be as careful because of signs of slowing economic growth and lingering risks of Brekzita. In this case, the meeting will not have a significant impact on the behavior of the pair pound/dollar, but volatile is not excluded in case there will be unexpected for the market statement or signals.
The Russian market has started well. Index Mosberg increases in the range of 0.5% and the RTS is trying to determine the direction, tracking the mood on the ruble. The Russian currency opened with a bearish gap, reflecting the strong dollar and a drawdown of oil prices. The pair dollar/ruble has touched mark 63,80 RUB, and then lightly pulled away from session lows. During the day the short-term impact on the dynamics of “Russians” will have over the appearance and mood in the commodity segment, where the players stopped in anticipation of the OPEC meeting.
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Nathan Lambert
Head of research,
Global FX