UK stocks opened Monday a fall

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After mostly positive dynamics of stock indices of Asia, European markets opened moderately lower on correction of oil prices and a fairly hawkish statements by the ECB. Villeroy said that the rate will be raised in a few quarters, not years, and called the slowing inflation in the Euro zone temporary. Today announced presentations of several officials of the European Central Bank, in anticipation of which the regional benchmarks may remain under pressure, which increases the uncertainty about the political future of Italy, where attempts to form a coalition government.
With an eye on the negative dynamics of oil and the drawdown of the European indexes, the Russian market has opened lower, although the RTS is trying to get in “plus” due to the slight bullish bias of the ruble. In anticipation of the tax period, which starts on Tuesday, the exporters convert foreign exchange earnings, which limits the pressure on the ruble. Meanwhile, Mosberg index is trading with losses of between 0.5% and could accelerate a decline if the situation on the European markets during the session will not improve.
The dollar continues to retreat in pairs with the European currencies, but returned to growth against the yen, which is not a special demand on the background of a relatively calm geopolitical backdrop. Tomorrow begins the second round of trade negotiations, China and the United States, and in anticipation of this event, the markets have some hope of a softening of Washington’s position after last Sunday, trump has promised to lift restrictions for ZTE, which not only resulted in massive job losses in China, but also harm America. In the Euro/dollar is not excluded attempts to test the 1.20 level, but at this stage the bullish potential of the single currency remains limited.
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Sergey Kostenko,
Investment analyst
GLOBAL FX