World stock markets continue to trade in the mode of shopping

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Global financial markets continue to trade in the mode of shopping, although the manifestation of the optimism is limited. No significant turmoil on the geopolitical front in recent days did not happen, but investors have been cautious due to the continuing risks in global trade and protectionist policies trump. Moderate optimism the Asian market has spread to Europe, where major indexes opened higher in average by 0.2%.
Forward momentum continues to show the Italian MIB, which grows on the sigh of relief after the new Prime Minister Conte hinted that the country is not going to leave the Euro zone. Russian indices opened mixed. RTS increased within 0.5%, reacting to the local
the strengthening of the ruble on rising oil prices. Index Masuri loses symbolical 0,09%.
On currency markets the dollar is weakening against European currencies and strengthened against yen. The Euro received a boost to growth against the background of yesterday’s reports that at the upcoming meeting (next week), the ECB will discuss the time frame for the completion of the program of quantitative easing. Additional support for the single currency is in terms of the total momentum of the dollar. A pair was noted on 2-week highs in the area 1.1765, and if in the near future will be able to hold above 20-day moving average could continue to climb. However, due to the continuing risks in Italy and the overall negative economic picture in the Eurozone, the potential for more sustainable growth in the Euro remains limited.
Oil quotes continue to recover after yesterday’s collapse on the rumors that America has asked OPEC to increase oil production by 1 million barrels. Brent, which at the time touched the lowest in almost a month ago in the area of 73,80 in the morning tried to test the level of 76, but met resistance and retreated slightly. Further tone will set the prices of official report of the energy reserves and production. A negative signal with this front could undermine the fragile recovery of prices.
Nathan Lambert
Head of research,
Global FX