State of the market: the market is under the pressure from negative sentiment

Trading on Friday opened with a strong decline in stock indices in the Asia-Pacific region. The reason for the growth of pessimism was the data on the slowdown of inflation in China. China’s CPI index continued to slow down for the third consecutive month, reaching annual lows.

Additional pressure on stock exchanges is caused by the correction after the growth and expectations of the US and China trade negotiations, that are starting today. It caused their negative dynamics, after a wave of optimism in the stock markets. As a result, safe assets received a support.

The US dollar index on Friday trades demonstrates a restrained dynamic, receiving support from the expectations of trade negotiations, but limited to political risks around the financing of the wall on the Mexican-American border. As a result, the US dollar index is limited by the side channel from 97.00-96.90 to 97.20-30. More significant resistance settled at 97.50, support 96.70.

Read also: “Martingale and the application of its strategy on cross-rates”

Hanzenko Anton

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