US stocks dropped more than 1% after unsuccessful attempts of growth
No sooner had stock markets to digest results of fed meeting and to evaluate the outcome of the next round of Sino-us talks, as trump decided to “defuse the situation” in world markets, suddenly talking about the introduction, September 1, 10% of the total duties on Chinese products for the remaining $ 300 billion.
During negotiations this week, the parties came to a significant breakthrough, but praised the dialogue as favorable, so the fresh provocation the White house was a real shock to investors. In response to trump’s tweet “blushed” all the rice assets, and protective, the yen, the franc and gold has naturally gained weight. And the Russian market was no exception. Mosberg index fell by 0.37% to 2729,42 and the RTS declined by 1%, reaching 1346,40.
US stocks dropped more than 1% after the initial growth attempts. Asian indices took the baton, reflecting the new thrust of the American leader. After this threat, the concern about the global economic slowdown, which recently priglasilo slightly by the soft rhetoric of Central Banks, full-fledged return to the stage. Beijing has already commented on the idea of trump, and yet in a rather restrained manner, saying that the introduction of new fees – this is not the way that will help to resolve the differences between the two countries.
Global stock markets will have to fall
In the short term the markets continue to react to the escalation of tensions between the two economies, and it definitely will not benefit the Russian market. Given the additional factor of pressure in the form of a collapse of oil prices, the domestic indices may open with a gap down and be cheaper on the average on 1%. In the case of index Mobimii is likely to be rolled back towards the level of 2700 and below.
Brent showed a very sensitive reaction to the tweet trump, having fallen in price by as much as 7%. The futures found support near the psychological mark 60 dollars per barrel and since then have recovered to within 2%. Sales in the raw materials segment were overly emotional and unreasonable, and if in the near future there will be additional negative, that level 60 needs to survive and serve as a springboard for a rebound as overall market fundamentals suggest now is not the aggressive price collapse.
Head of analytical Department,
IR “Instant invest”: