The stock market is recovering after several days of falling

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On Wednesday, the interest risk on the stock markets of the world returns. Asia grew well on the positive reviews trump about progress in trade negotiations with Beijing. Also the US President called nonsense the intention of the fed to raise rates next week. Such a statement trump has fueled demand for riskier assets and pressured the dollar, which, however, refrains from a deeper drawdown in anticipation of the inflation report in the United States. In the Asia Pacific market in leaders of growth was the Japanese Nikkei 225, which rose by 2.15%, also thanks to the further weakening of the yen.
European futures are traded with an increase on average of 0.4%.
But in light of the growing political risks in the region to count on a rally hardly worth it. The Italians continue being stubborn and I don’t want to reduce the target level of budget deficit in France erupted full-fledged political crisis and the tense situation in Britain only adds to the overall picture.
Meanwhile, Russian stocks neutral. In the first minute of trading the index of RTS Mosberg and tried to grow up a bit, but soon went into negative territory amid a lack of pretexts for strengthening. Oil is trading at a very modest upward bias, which is clearly not enough to inspire the Russian investors on purchase. The ruble opened with a gap down, but then turned around and depreciates the currency basket. The us dollar continues to stagnate above the level 66 RUB experiencing shortage of pulses due to the uncertainty in the oil market and mixed sentiment on USD on Forex.
The key event today will be publication of inflation data in the United States. According to forecasts, in November the growth of consumer prices slowed from 0.3% to 0.0% in monthly terms. If so, market expectations regarding the fed raising interest rates will continue to decline and hit the dollar. However, the expectations of monetary policy next week remain high.
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Nathan Lambert
Head of research,
Global FX