World stock markets finish the month optimistic
Stock markets on Wednesday morning develop rebound. However, the Forex remains a demand for the American currency.
Futures on the S&P500 go up 0.3 percent after rising 1.9 percent the previous day. Nikkei225 in the morning adds more than 1 percent after a gain of 3.2% on Tuesday. Key Chinese indices also in positive territory, supporting the shift from local minima.
At the same time, there remains some points that don’t allow you to completely surrender to the power of optimism.
Demand for the dollar is often a good indicator of investors ‘ concerns. And this trend is still in force. USDX went up by Wednesday morning before 96.80 and back highs, which have not been reached since August of 2017. It is necessary to highlight the weakening of the single currency due to political problems in Europe (drop in support for Merkel and budget disputes in Italy).
Sterling is also suffering because, despite the approaching deadline, lawmakers still have not umobile plan of an exit of Britain from the EU. This fact increases the risks of “out of the situation without transaction”. Against this background, the GBPUSD on Tuesday fell below 1.27, lost for days 0.9%.
In the debt markets is increasing the yield on long-term US government bonds after a period of pullback from local maxima.
The Chinese yuan continues to slide to around 7.0, despite the rebound in the equity markets.
Summarizing, we can say that the bidders though and moved away from extreme levels of fear which they experienced last week, still remain wary, maintaining the negative trend.
The main trend remains a rising U.S. long-term bonds following the increase in U.S. interest rates. In turn, this reduces the attractiveness of investments in risky assets such as emerging-market currencies and shares, growing companies. Ultimately, this increases the demand for the American currency and puts pressure on commodity assets.