Stock markets: the Extent of a correction are high risk
The Russian stock market has entered a corrective phase, which is inherent in any financial markets after a prolonged growth. It’s time to partially lock to open position and carefully look at the issues rebuy issuers. External background slightly reduced the fervor of big investors, because the oil market will become more specific after the meeting of OPEC in Vienna from 5 to 7 December.
Saudi Arabia and Russia plan to meet in Vienna at the preparatory meeting on Wednesday, which will determine the direction for the oil market. The stakes are high after oil prices suffered the biggest monthly decline since the global financial crisis in November.
It is too early to say that the OPEC group, which includes allies such as Russia and Kazakhstan agree to cut production. Saudi Arabia and Russia in recent months have raised production to almost record levels. Currently, the Kingdom produces from 11 to 11.2 million barrels of oil per day. President Donald trump also plays an important role. He led a Twitter campaign against OPEC, requiring oil companies to continue pumping to lower gasoline prices for U.S. consumers. At the moment investors will keep a wait and monitor the results of the meeting of OPEC countries.
Wall Street substantially corrected. Major U.S. stock indexes fell sharply on Tuesday after President trump signaled readiness to resume trade war with China if the trade negotiations fail. Dow Jones industrial average fell 2.25%, while the S&P 500 index fell by 2.4%. The NASDAQ Composite fell by 2.7% after the technology joined early the sale at about noon, which has further reduced the entire market.
Trump said in a series of tweets on Tuesday that the deal between the two countries will be made, if possible. But the President called himself a “Tariff”, hinting that he is ready to rebuild tensions with China. Shares of Apple (NASDAQ: AAPL) fell by 3.7% as supplier Cirrus Logic (NASDAQ: CRUS) cut earnings forecast due to weak sales of smartphones Phone. Trading on the U.S. stock market has been suspended. Donald trump announced the mourning on December 5 in connection with the funeral of the first President Bush.
“International financial center”