State of the market: investors remain apprehensive due to the possibility of trade wars

Trades on Monday opened with a small decline in the euro across the entire spectrum of the market, which was caused by the possibility of forming a suspended parliament in Italy. After the parliamentary elections that took place on Sunday, there is no clear preponderance of leadership among the parties in Italy, and the exit poll results differ significantly from reality. The results of the parliamentary elections in Italy are expected closer to the afternoon.

Smoothing factor for the euro was the fact that the party  of Angela Merkel still managed to conclude an agreement with the coalition and form a majority. As a result, fears for the euro area have slightly decreased. At the same time, the market is focused on the aggravation of the US trade relations.

So, after it became known about the intentions of the US to increase duties on imports of steel and aluminum, the market expects responses from the exporting countries, which will undoubtedly cause confrontation on the world trade arena. Investors continue to take a wait-and-see position, lgoing to the assets of the safe haven, the main movement of which fell on Friday. Now the market expects new drivers for the movement, while maintaining a pessimistic sentiment.

Graph of the US dollar index. The current price is 90.00.

Hanzenko Anton