Stock markets traded ambiguous and unstable
A similar pattern was observed at the Russian sites. Increasing nervousness due to the uncertainty in anticipation of today’s speech Powell at the Symposium in Jackson hole, the importance of which after the publication of the minutes of the meeting only increased. Investors hoping to hear hints of the continuation of the easing, but not confident that they will receive accurate signals. Tensions smoothed over the minutes of the meeting of the ECB, who wore pigeon character and naturally put pressure on the Euro. The European regulator expressed concerns about low inflation expectations and in fact has announced a stimulus package.
Again reminded myself of the yuan, which updated the 11-year lows. Market participants at this stage would be sensitive to the attacks of the devaluation of the Chinese currency, which is not surprising, because the fall runs the risk of incurring new angry tweet trump of manipulation and unfair competitive advantage to the detriment of the trade deficit, and exporters of the United States.
While the tensions on the trade front still high, and the yuan is oscillating near the levels of 11 years ago, the currency of China will remain on the radar of investors.
In anticipation of the main event of the day (Powell’s speech is scheduled for 17.00 GMT.) trading activity in global markets is likely to be low. Since morning the Asian stock markets grew, but the momentum is fairly discreet due to caution players with an eye on the yuan and the head of the fed. Russian indices, which on the eve has closed in slightly positive, slightly stronger at the start of the session and are likely to be inactive during the day. The pair dollar/ruble, the fall of which yesterday stopped the 200-day moving average in the area of 65,30 RUB, has no plans to go below 65 rubles, unless Powell is not shocking USD openly dovish rhetoric, which is unlikely.
Director for analysis of financial markets and macroeconomics
IR “Instant invest”: