Podstawowa analiza

Equity markets again under pressure

Strengthening of the US dollar continues - today USD dollar index has gained in the zone of 96.75 and continues to grow steadily. On this background, all major currencies are traded under pressure. EUR / USD continues to experience serious pressure from the US dollar and continues to move down.

European strong statistical data failed to provide some support for Euro, as for the first time this year, indices of economic conditions and sentiment from ZEW, as well as data on the EU GDP turned out to be higher then expectations.

Today, there is no important statistics in Europe, therefore, all attention will be directed to geopolitical events, as well as statistics from the United States, where data on retail sales and industrial production will come out later the dat. It is noteworthy that for both indicators experts predict a decrease in comparison with the June data, which may weaken the dollar somewhat giving opportunities for correction to other currencies. However, it is unlikely that these data can cause a mid-term turn, so the general trend for strengthening the dollar should continue.

The mood in the world markets in the middle of the week is worse today on the background Turkey and the United States confrontation. Turkey announced a sharp increase in import duties on a number of goods, including American cars (by 120%), tobacco products (by 60%), alcohol (by 140%). These measures were a response to the United States accepting increased duties on aluminum (up to 20%) and steel (up to 50%) from Turkey. Thus, the hopes of the markets for the transition of the US-Turkey conflict into a soft phase did not materialize.

On this background, the global stock markets are again under pressure. Amid more statistical data ahead we expect increased volatility in the equity and currency markets with the beginning of the American trading session.