Forex markets

European stock markets grow, Wall street waits for Trump speech

In the afternoon, the London stock index FTSE 100 rose by 0.1 percent to 7.262,40 points, the Frankfurt DAX 30 by 0.1 percent to 11,831.94 points, and Paris KAK 40 by 0.2 percent to 4,854.14 points, the agency Frans pres.

In the US, nearly 15 minutes after the start of trading, the Dau Jones Industrial Average dropped 0.1 percent to 20,826.37 points, expanding the S & P 500 by 0.2 percent to 2,366.31 points, and the Technological Nasdaq by 0.2 percent 5.849,28 points.

Dau Jones and S & P 500 finished trading on a record high on Monday.

On currency exchanges, the euro jumped to $ 1.0603 Tuesday from the previous $ 1.057, the pound fell to $ 1.2438 from $ 1.2440, and the dollar to 112.09 yen from 112.70 yen.

The US president has hinted that he will reveal important news regarding infrastructure policy, which, according to AFP, is fueling hopes of meeting promises from the pre-election campaign.

Traders will also look for details of tax reforms, another Tramp promise, which, as he said earlier this month, would be “phenomenal”.

In Asia, Tokyo’s Nikei index jumped by 0.1 percent, Shanghai by 0.4 percent, and Honoskio dropped by 0.8 percent.

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World stock markets are falling: Only the ruble has strengthened

The value of the Chinese currency has dropped by more than three percent compared to the US dollar as a result of the American election results. For the same reasons, the Mexican pesos fell by about eight percent.

Juan is at $ 101.94 per dollar, while the currency of the southern neighbor of the United States is at its lowest in the past 10 years.

The 13 percent drop pushed the pesos below 20 for one dollar, in panic-selling.

This could force the Mexican authorities to raise interest rates to stabilize the currency in a situation where it is possible for Tramp to meet pre-election promises and really lift the wall to Mexico and disrupt the trade of the two countries.

And in Russia, stocks are rising
Shares on the Moscow Stock Exchange rose to news of the victory of Republican candidate Donald Trump in the US presidential election.

The Russian RTS index, denominated in dollars, jumped 1.2% this morning, while the Micex index, denominated in rubles, strengthened by 1.0%.

Russian Economy Minister Alexei Ulyukayev, however, warned that, in the short term, the exchange rate could fluctuate, but that, in the long run, the ruble will be strengthened, the Russian news agency Interfax reported.

He also said that Russia will do everything in its power to restore trade and economic relations with the United States, Reuters reports, citing Russian media.

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Panic on world stock exchanges – a new crash or a transient crisis?

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The world’s stock markets started to panic in a year. The reason, like six months earlier, was a decline in the Chinese stock market, which caused a chain reaction in New York, Berlin, Tokyo. The US and French stock market lost five percent of the value. Wall Street did not record such a fall in the last 119 years – the worst result since 1897.

Economists argue whether it is transient instability or a new wave of the crisis, such as the 2008 one, according to US stockbroker George Soros.

The situation on the stock exchanges is improving, which indicates that the announced crash probably will not happen. But what is the cause of this global instability?

No cooperation
The instability in the world markets indicates that there is no international cooperation and that the G20, an organization designed to find an international response to financial crises and playing the role of an economic regulator, has lost meaning.

The new geopolitical reality requires new institutions, since the forms of global economic management so far proved unsuccessful. China, Russia and other economically important forces determined to break away from American domination have formed BRICS, the Eurasian Union, the Asian Investment Bank, which are changing the world’s economic architecture.

Economic crises are following the world economy from the 1970s to the present, from the 1975 oil crisis, the Asian economic crisis of 1997, the Russian financial crisis in 1998, the collapse of the stock exchanges in 2000, to the latest in 2008.

They are a product of globalization and geopolitical changes that have led to a new relationship of forces in international trade. Oscillations on world stock exchanges are a reflection of the struggle for dominance in the globalized market.

China’s challenge for the United States
China, which has developed into the second world economy, has become a challenge for American domination. Its economy, between market and state control, is part of the world economy, with foreign investors investing in it, among which many come from the West. So when there is a quake on the Chinese market, the whole world is feeling it.

After a decade of economic downturn, thanks to becoming a world-class factory, China is facing a slowdown, a worldwide trend. In order to maintain the competitiveness of the Chinese authorities, they chose the most obvious mechanism – devaluation of the monet, which in August, as well as in early 2016, led to chaos on the world stock exchanges.

The yuan devaluation continued following the International Monetary Fund’s listing of Chinese currency among the international reserve currencies, saying it had met all the criteria to join the US dollar, the euro, the Japanese yen and the British pound.

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