The main theme of global markets – rigid correction of the American stock
The main theme of global markets – rigid correction of the American stock, which occurred on the eve of the most significant yet memorable for many traders Feb. The main reason is the systematic tightening of monetary policy by the Fed and, of course, a deepening of the contradictions and, as a consequence, more likely significant negative effects of trade wars trump for American companies.
Investors are concerned that corporate reporting for the third quarter, the publication of which will begin on Friday with the traditional publication of ALCOA, shows the widespread decline of profit vs consensus forecast is particularly sensitive to the ongoing uncontrolled strengthening of the us dollar, oppressive dead weight on their global competitiveness and growth in the yields of us government bonds.
For the S&P 500 index the results of yesterday’s auction — the worst result for the past quarter and five consecutive trading sessions, noting the fall of an index “the wide market”, became the most prolonged since the recognition of Donald trump who won the presidential race in November 2016. Dow Jones also showed a maximum drawdown since February and the futures on all three US stock indices today are again in the red zone, which portends a continuation of the “bear” trend. This explains the violent emotional reaction of the President of the United States on the actions of the fed, a policy which he, as usual, bluntly in a tweet called “haywire”.
However, the current strengthening of the ruble, which has moved from opening at 66,90 to the level 66,50 per dollar, there is still internal cause. She looks especially plausible against the background of a decreased to $81,41 per barrel of oil that occurred on the background of lowering the meteorologists US the level of danger of hurricane Michael, which day ago frolicking in the Gulf of Mexico in the heart of major us oil production capacity.
The reason for this is – relatively-good results of yesterday’s auctions on placement of OFZ Treasury, who managed, despite sanctions, to issue the demand for the entire stated amount of the issue – 5 billion roubles – though with a fairly high level of clipping on the yield of 8.28%. The market immediately understood that things could be much worse – especially considering the fact that on the eve of his standard issue trillions of COBRAS investors excited of the Central Bank.
“International financial center”