World stock markets continue rally

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On the world markets continues, the rally in risky assets. Stock markets, raw materials and vysokotochnye are rising and the yen and gold went on the defensive. Dollar weakens against European currencies after yesterday’s retracement. Brent crude is testing the psychological mark of $60 for the first time since mid-December.
“Culprit” widespread manifestations of optimism is the progress in relations between the US and China. The parties have extended the talks on the third day, indicating the seriousness of the intentions of Beijing and Washington, as told by the Chinese officials. The States and China are reporting positive developments in trade negotiations, and now investors lay in the price of the deal.
But given the lack of specificity, for euphoria is not worth it. The differences that emerged between the two largest economies in the world, to allow is not easy. And trump, who loves to shock the audience, it is highly changeable in their moods.
But there are other factors that continue to require investors to exercise caution. Yesterday the world Bank has lowered its forecast for global growth. Estimates were revised slightly, but the important fact that the projections almost everywhere change for the worse.
Today it became known that in 2018 car sales in China fell for the first time in more than 20 years. For the year the index fell by 6%. To understand that this really alarm bell, you need to remember that the Chinese market is the largest in the world.
Given all of the above, the resumption of the flight from risk is just a matter of time. Investor sentiment remains fragile, and at some point fear for the health of the world economy can get back on stage with renewed force, again sending stocks into free fall.
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Michael Mashchenko,
Analyst social network for investors
eToro in Russia and the CIS