Looking ahead to the end of the week, risk aversion has returned to global markets and is reflected throughout the main financial instruments.
This is mainly due to a return of a belligerent position on the part of the president in charge of the White House, Donald Trump, who during the day of yesterday, proceeded to attack in a new way his main allies.
Changing from an operation that had shown enough prospects for global markets for much of the current week, ahead of the G-7 meeting, which will take place in the province of Quebec, Canada, things will be They have become reluctant.
Specifically, Donald Trump, through his preferred means of communication, Twitter, mentioned why the European Union together with Canada, do not inform the public that for years they have implemented massive tariff rates along with barriers to non-monetary trade against the United States.
Preparing for this event, which looks like possible complications, investors have therefore decided to move away from risky assets by sending all the main global indices downwards.
Looking ahead to the session, the North American contracts, futures for the S & P 500, expect the index to start operations downwards.
This is happening after the index found resistance during yesterday’s session at the level of expansion of 261.80% (blue oval) of the lows of the .com crisis, previous highs to sub-prime crisis and consequential correction
Looking for protection, investors have proceeded to instruments with such characteristics such as bonds and therefore have generated a decrease in their returns.
(The relationship between the yield of the bonds is inverse: the higher the demand, the higher the prices and therefore a reduction in the yield given).
Yield of 10 years:
United States: -0.5 PB / 2,917%
United Kingdom: -3.5 PB / 1.371%
Germany: -4.6 PB / 0.434%
Japan: -1.6 PB / 0.033%
This market dynamics is therefore also driven by the Japanese Yen, which tends to be considered as a safe haven currency with good profits in good profits.
After some data in terms of German industrial production very by factors of the expected, which begins to show a lack of capacity of the German economy to rebound its economic cycle after a fairly comfortable first quarter, the Euro is located reflecting this disability and is recording minimal losses.
The price of gold is registering advances, although at a lower level, given that the US Dollar is also operating on demand, which, due to the fact that this raw material is denominated in dollars, limits its advance (0.11%).
The price of oil is currently trading downwards mainly due to unclear signs as to whether or not the members modify the oil production curve. This is being presented to the big balor industries after yesterday’s quotation was driven by concerns about Venezuelan production.
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