The global stock market increases sales before the holidays

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At the end of the trading week on global stock markets remains the acceptance of risk, although the pressure is not so aggressive as before. Asia has shown a more moderate drawdown, rather than indexes on wall street, while European futures not yet decided on the motion vector and traded in the flat. The threat of temporary suspension of the work of the U.S. government contributes an extra negative on the markets, puzzled prospects of the world economy.
The Russian market in the beginning of the session shows inactive and multidirectional dynamics. RTS is recovered by about half a percent amid the rebound of the ruble, which yesterday suffered an impressive loss, and today opened with a gap up. However, it is unlikely to expect a more significant rebound in our currency, given the lack of interest in risky assets in General and the inability of oil prices to find a bottom and go to recovery.
Brent is trading slightly above the opening level, testing level 55 after yesterday’s collapse to the lows of September 2017 at 54,57. Locally the pressure of the asset has weakened due to speculations of a possible larger production cuts by OPEC. In particular, the cartel is preparing the document revealing the rules of cutting deals for each country involved in the transaction. According to the Secretary General Barkindo, production will have to cut 3% more than has been voiced previously (2,5%). While the players are not in a hurry and respond to these conversations and prefer to wait.
The fate of the dollar in the short term will depend on US data. The focus will be the GDP report. No less interesting for the players will be data on personal consumption expenditures and personal income and spending figures. The lower forecasts can increase the pressure on the USD.
Nathan Lambert
Head of research,
Global FX