US stocks: the Major indexes dropped on geopolitics

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The growth of yields of treasuries, which has already reached a maximum from mid-2011 values have put pressure on stock markets of the USA, where three main index dipped by 0.7-0.8%. Then the added negative news from North Korea, which has canceled a summit with South Korea and threatened to cancel the meeting with the leader of the United States, scheduled for June 12, if trump continues to insist that North Korea abandon its nuclear weapons. Add to that the continued concern about the trade negotiations between Washington and Beijing, and is not very favorable picture for investors. European futures before the opening of the official bidding are showing mixed, but mostly positive.
The dollar remains in a high position, updating this morning the highs of this year in tandem with the Euro. Quotes have violated the integrity of important support 1.1820, referring to the level 1.1815, which is worrisome technical signal. Now the way to 1.18 and below opened, and in the case of the further growth of U.S. government bond or, for example, the release of weak inflation data in the Eurozone, it is not excluded the new wave of sales, which will lead the pair to new lows.
In the oil market maintained the upward slope, but while the bulls do not attempt return quotes Brent above $ 79. Price centrally located near the 78 and maybe some time to spend in a consolidative mode, waiting for official data on hydrocarbon reserves in the United States after the API report indicated the increase in stocks of crude oil by nearly 5 million barrels. If the release of energy will also point to the large increase in reserves and future production capacity, Brent may be corrected under the mark of 78, while the overall picture remains bullish.
Sergey Kostenko,
Investment analyst