The US stock market: Us investors hold sales

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The expected decline of the Russian market at the opening of trading due to a decline of 0.2% to 1.8% of futures on global stock indexes due to sales in the U.S. market on Monday. Thus, investors reacted to the message of Vice President of the United States Mike Pence at the APEC summit for China: the US will not change its course, as long as China does not change. In other words, the trade war continues, threatening to disrupt trade relations between Chinese and American companies, and this will slow down the growth of the world economy. This is partly to reduce the demand for oil with the growth in US production, but the expectation of lower production in OPEC transaction+.
At the moment futures curve for Brent crude is in backwardation from mid-2019. Therefore, before a significant meeting of the leaders of the two countries at the summit “Large-20” at the end of November the us market will be adjusted downward. Plus investors have decided to reduce positions ahead of long holidays in the USA – Thanksgiving, and most likely, will continue on Tuesday and Wednesday, and on Thursday on Friday will be illiquid in the world market.
Against this background, the profitability of American husbando will decline, and the dollar index to rise. However, the ruble will be supported, but with mixed results due preparation for tax payments next week.
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Viktor Veselov,
Chief analyst,
Bank “GLOBEKS”