Moscow, June 4 — “News. Economy.” The Ministry of Commerce of China on Tuesday made statements that may imply a softening of rhetoric of Beijing regarding trade disputes with the United States. Another positive factor is the expectations of monetary stimulus from the world’s Central Bank.

[PICTURE] [/PICTURE] U.S. stock futures growing up in the premarket. On Monday, the S&P 500 lost 0.3%, Nasdaq 100 fell by 2.1% — were sold shares of Apple and Internet giants. S&P 500 went below the support zone 2820-2790 points. The next target could be the mark of 2700 points. More global landmark — 2550-2450 points.

Positive factors

The news from China. The Ministry of Commerce of China said Tuesday that disagreements between Washington and Beijing should be resolved in the negotiations. China has softened the rhetoric, which was perceived by market participants in a positive way.

Monetary policy of the fed. Market participants began to lay that before the end of the year, the key fed rate will be reduced twice, to 1.75-2%. President of St. Louis James Bullard stated that the escalating trade disputes rate reduction may soon be warranted. Thursday will be the ECB meeting. The rhetoric of the regulator, likely to soften. Euro area’s inflation in may eased from 1.7% to 1.2% per annum.

Risks

Protectionism Trump. Last week Donald trump announced the introduction of a 5% aqueous import duties on all goods from Mexico on June 10. The President of the United States are dissatisfied with the influx of illegal immigrants. In addition, trump instructed from June 5 to exclude India from the list of countries that have trade preferences. In the case of the United States and China, positive statements of both parties have repeatedly heard this year, but countries were unable to agree.

Antitrust action against IT giants. On Monday, Reuters reported citing informed sources that US regulators prepare antitrust investigation against 4 of the largest tech companies. The powers of Supervisory authorities are divided between the Federal trade Commission, which will take control of Amazon and Facebook, and the Ministry of justice, which will deal with Apple and Google. The shares of these corporations on Monday, lost more than 4.5%.

The sovereign bond market. Investors are in a relatively risk-free securities amid rising concerns over the slowing global economy and increased expectations to reduce interest rates by the fed. The corresponding yield Treasuries fall. Yield long editions fall more than short. Accordingly, more than 50% of the “yield curve” is already inverted — it is upside down. The curve itself is the icon of Nike, adding to concerns about the possible start of a recession in the U.S. in 2020-21.

The chart of the S&P 500 index at the end of Monday, the day timeframe [PICTURE] [/PICTURE] Oksana Kholodenko, an expert on international markets BCS

Read more •••

LEAVE A REPLY

Please enter your comment!
Please enter your name here