The world stock markets returned negative with the filing in American indexes

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The world stock markets returned negative with the filing of the us indices, which dipped after the recent restoration, which resulted in a negative start of trading in Europe. Fears of trade wars has receded a bit, but investors are aware that a new “dirty tricks” from trump’s can make themselves known at any time. At this stage, the additional negative factor for markets are conversations about the planned limitation of Chinese investment in American technology, which has been hit hard in the technology sector shares.
Based on the outer film which complements the story of the expulsion of Russian diplomats from more than 20 countries, Russian stock markets started in negative territory after recovering the day before. The ruble opened sharply gap down in early session, the dollar hit the weekly highs in the area of the 57,57 RUB, which is reflected in the dynamics of the RTS index, which has decreased nearly 0.8% while maintaining the same conditions can increase losses to 1% or more.
Oil continues to retreat for the third day in a row, although yesterday Brent managed to update the highs beyond the 70 mark. Risk aversion, coupled with the trend to revive demand for the dollar from early European session has created the conditions for further adjustment of prices for black gold. Further tone will set the official report of the energy Ministry’s crude oil reserves and production. The API report has led the market in mixed feelings, putting on a large-scale increase in hydrocarbons (+5.3 million barrels) and an even more aggressive decline in gasoline stocks (-5,8 million barrels). And the upcoming release of may be clear, further defining the motion vector of prices in the short term. Confirmation of growth of reserves and production will increase pressure on Brent crude and sent prices to around 68.
In the currency market, the dollar continued to hang over European currencies. EUR/USD pair, which never came to the level of 1.25, recedes into the background of a short squeeze on the dollar at the end of the month and the quarter. The single currency also felt additional pressure after yesterday’s dovish comments of the ECB. To return the demand for the Euro may American statistics, if not disappointing. Of particular interest will represent the index of personal consumption expenditures, which is involved in the formation of inflation expectations.
Sergey Kostenko,
Investment analyst