Moscow, may 23 — “News. Economy.” On the U.S. stock market there is a new wave of decline. Washington is preparing to expand sanctions list Chinese tech companies. Eurozone data may have reflected negative trends in the global economy. The fed in the minutes called for a patient approach, however, in the medium term may require more drastic measures.

[PICTURE] [/PICTURE] U.S. stock futures sink on premarket. On Wednesday, the key indices lost 0.3-0.5 percent. Support zone for the S&P 500 2820-2790 points. Possible deeper the drawdown. The first target in the case of medium-term correction may be a mark of 2700 points.


The US and China. Despite the postponement of the sanctions, American and European suppliers are moving away from business with Huawei. The “black list” of the U.S. Treasury may be expanded. According to foreign media reports, speech can go about the three Chinese companies, specialized in technologies of surveillance. The response of China can affect the American tech Corporation. According to Goldman Sachs, if in China were banned to sell Apple products, would threaten 29% of revenue, “Apple giant.”

The problems of the world economy. The composite index of purchasing managers (PMI) in the Eurozone in may rose to 51.6 points from 51.5 points in April, while analysts expected an increase of the index to 51.7. There has been a sustained weakness in the industrial segment. Flash PMI in the manufacturing sector fell to 47.7 from 47.8 points, all over going down from the edge of 50 points separating economic expansion from slowing activity. At the same time, the index of business confidence in the German economy the German manufacturing sector in may fell to 97.9 points compared to 99.2 in April, the figure fell to a low for the last 4.5 years.

Positive factors

The monetary policy of world Central Bank. Wednesday was the protocols of the fed meeting, held on 30 April — 1 may. In the “minutes” they say that the fed in the near future is unlikely to change interest rates. Members of the operations Committee on the open market are satisfied with their current “patient approach.” Many members of the FOMC believe the recent decline in inflation is temporary. It was observed reduced risks to the economic Outlook. This contributed to the need to keep interest rates at current levels. Now, however, the risks of trade wars and then the economic slowdown and turbulence in financial markets intensified. Interesting point — the protocols were marked by quite high levels of financial assets and the debt load of American business.

The easing of protectionism in relation to other countries. Last week Donald trump has postponed the introduction of a 25% duty on car imports from the European Union and Japan. In addition, was abolished import duties on aluminium and steel from Canada and Mexico. Chinese incentives. In the beginning of the week people’s Bank of China pledged to continue its targeted growth and maintain the stability of the yuan. The regulator has warned that the deployment of a trade war could destabilize the world economy. Negative trends are already reflected in the macro statistics of China and the Eurozone.

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

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