The collapse of the stock market has supported the growth of Treasury yield

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The Russian stock market, like all other stock markets react to the same active the sale of shares of companies amid rising yields of US Treasury bonds. The oil market also reacted to the decrease in the indices. Oil prices began to decline after the General fixing of positions by large market participants in the global stock markets. Data from the American petroleum Institute (API) has been the center of attention, as it showed that crude oil inventories in the U.S. rose more than expected last week. On the coast of the Gulf of Mexico daily net production of about 670,8 thousand barrels of oil and 726 million cubic meters of natural gas because of the storm Michael (4 categories). According to the Bureau of safety and environmental protection, on Tuesday was reduced about 42% of the daily crude oil production in the Persian Gulf.
Against the background of falling oil prices started adjusting some of the oil and gas Russian company. Gazprom (MCX: GAZP) may continue to decrease by -0.5%, and Tatneft (MCX: TATN) the expected down 0.6% and LUKOIL (MCX: LKOH) the potential of a reduction of 0.7%. Against this background, the decline in Russian stock indexes could continue until the end of the week.
American stock market closed in the red zone. The increase in Treasury yields was the primary catalyst for sales of shares, since higher profitability implies a lower present value of future dividends. Lately, the us stock market was severely overheated.
The rapid growth in 2016 amid strong U.S. economy and the faith of the biggest investors in the policies of Donald trump moved the market to new heights again and again.
In fact, nothing terrible in the stock market did not happen. This is a healthy market response in the form of such a correctional wave, which sooner or later had to happen. Nobody wants to lose those profits, which were in fact not yet implemented institucionales and hedge funds. Hasty exit from the stock companies have created a chain reaction and began an active struggle among major market participants for better price for the sale of assets. This cyclicity from time to time for stock markets. Especially in periods of strong overbought or oversold. On the concerns about global growth rates, investors are beginning to seek refuge in the stocks of companies related to retailers.
The choice fell on the company “Dollar Tree, Inc.” American chain of stores fixed price selling at price 1 dollar. On the background of declining U.S. stock market, the company’s shares rose more than 2%, despite the recent warning analysts that the US tariffs on China will increase delivery costs for the retailer. The company’s shares were bought at $80.00 per security. Today may be the continued decline of the index, as many investors and hedge funds do not physically have time to fix positions in one trading session.
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Gaidar Hasanov
Expert
“International financial center”