Stock markets spooked by the risk of new trade wars

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Asian stock markets closed in negative territory, but the European markets have shown resilience and has started on a positive note, despite the introduction of import duties trump. Moreover, while ignored the news that Agency S&P downgraded the rating of the German giant Deutsche Bank, questioned the Bank’s ability to implement the business reorganization. Russian site began trading on Friday in different directions – the index of Masuri losing 0.2% and the RTS increased a quarter percent. To the extent that investors will be digesting the implications of the introduction of import duties by the US against the EU, Mexico and Canada, the mood in global markets may worsen throughout the day.
The pair dollar/ruble, meanwhile, continues to consolidate around 62 RUB against the background of absence of significant drivers. Brent also can not determine the motion vector, oscillating around the 20-day moving average. Quotations need breakdown $ 78 to display the local recovery within the range, the upper limit of which is presented in the form of peaks at the level of 80,50. Evening Baker Hughes data is unlikely to have a noticeable effect on the behavior of Brent, although in the case of a significant increase in the number of drilling short-term downside risks increase.
In the currency markets dominate in close ranges. The Euro and the pound in the morning session, came under pressure, but in the early European session returned to their original positions, although will seize the initiative from the dollar is not.
Italy formed a government and thus failed to resolve the political crisis, but the Euro does not react to this news, because key positions in the new government will take the eurosceptics, and this means that the threat of Italy’s exit from the Euro zone persists. EUR/USD still needs a break out level of 1.17, which will be held today, if the US released weak employment data and salaries.
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Sergey Kostenko,
Investment analyst
GLOBAL FX