The stock exchanges of the world remain deep in the negative
Monday morning we were making predictions about the impossibility of closing of the first trading day of the week in the “green zone”. But what value would be so negative, we could not imagine.
American indexes have lost 2,4%, the DOW and S&P500. The leader of the fall in the DOW 30 were shares of Apple (AAPL), which lost -5,81%, in second place Boeing (BA) losses -4,88%.
It is also worth noting that day trading all securities in the industrial index decreased, and only in the last hour before closing Procter&Gamble has been able to recover – 0.09%. High-tech NASDAQ decreased by as much as -3,41%.
Our recommendation to sell shares of Nvidia (NVDA) have outdone themselves. We have pointed out the possibility of reducing the paper to a level of $161. The day closed at $158,45 was lost -6,14%. We maintain our recommendation and continue to hold the sale at $146,12.
The reason for such a profound failure of the market was the information about retaliatory duties on the part of China in respect of goods of US $60 billion will introduce Them on 1 June 2019. The course is to be expected, on the one hand, because Beijing had previously said mirrored actions to the actions of Washington. On the other hand, this means moving a trade war to open phase that is so much feared by all investors.
Despite the careful optimism exhibited by futures for indexes of the USA, too early to rejoice. Most likely, we expect a continuation of the U.S. indicators. If tonight we will see the closure of the S&P500 index below yesterday’s, this will pave the way for the movement to the level 2727,27. It is only 3%, and this value can be achieved within the next 2-3 days.
The Russian market, which yesterday became cheaper, along with all exchanges, today shows a slight increase.
Interesting stories can be found in the papers of RUSAL (RUAL) and of Polyus (PLZL). Today they will publish financial reports according to IFRS for the first quarter of 2019.
“International financial center”