Stock markets recovering from the collapse

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The situation on world markets continues to stabilize in the second half of trading Tuesday. Bank of China stabilized the yuan and assured investors it has no plans to devalue the national currency for competitive advantage. After yesterday’s panic, it was enough to stop sales and to attract the attention of buyers in depreciating securities. On this background leading share indexes of the Russian Federation recover more than 1%, and the ruble is adjusted upwards on average by 0.5%.
In the domestic market of the fears associated with the US sanctions, retreat. However, this does not mean that the current recovery will be sustainable and will be continued. Everyone’s attention is now focused on a trade conflict between Washington and Beijing, which in recent days has greatly increased, which is not conducive to the expression of interest to purchase higher-yielding assets.
Moreover, fears of a slowdown in the world economy traditionally, severely affecting the assets of the developing segment, which includes including Russia. So it is possible that at some stage the correction in our market will return bearish momentum, perhaps in the form of local profits.
With the oil market support is still there. Brent is trading in the flat, earlier, updating the lows of the beginning of the year, and trying to grab a mark 60 dollars per barrel. A potential reduction in crude oil inventories in the US is unlikely to significantly strengthen the quotes as traders mainly focused on the trade war between the two largest economies. From a technical point of view, the futures will be subject to risks bearish while trading below the 200-day moving average, which is slightly dropped and is now just below $ 65 per barrel.
Arseniy Dadashev,
Academy of management Finance and investment