The world financial markets are showing signs of stabilization, as the new provocation from North Korea contributed to the inflow of capital to safe assets. Now the attention of the markets is again riveted on the comments of representatives of the US central bank. The MSCI index fell by 0.3%, after the fall in the value of shares of technology companies on Wall Street. Australian stocks fell 0.1%, while the Nikkei in Japan fell by 0.4% under pressure from a stronger yen. Growing geopolitical tensions: Minister of Foreign Affairs of North Korea said that the post of the president of Trump Twitter can be seen as a declaration of war, and what North Korea reserves the right to take countermeasures, including the downing of US bombers, even if they are not in their airspace. Washington denies the fact of proclaiming the war to Pyongyang, nevertheless, we clearly see how the verbal war between the two countries is heating up. In this situation, market participants prefer to act cautiously.
After yesterday’s decline, the euro again traded with a positive momentum, helped by the victory in the elections in Germany, Chancellor Angela Merkel, overshadowed by the popularity of the ultra-right. The single currency rose 0.1%, and the US dollar index, which reflects its strength against the six major currencies, fell 0.1%. Fed Chairman Janet Yellen will deliver a speech today, which will be closely examined by investors in the face of uncertainty about the issue of raising the interest rate this year.
Crude oil has risen in price, as the main producing countries are talking about an imminent change in the balance of world markets. Turkey at this time threatened to cut oil flows from the Iraqi region of Kurdistan to its ports. Gold fell slightly in value while remaining close to the level achieved in the previous auction when the North Korean threat contributed to higher prices of the precious metal by more than 1%. Today, the publication of the Consumer Confidence Index CB in the US is expected. This report reflects the level of consumer confidence in economic activity according to conducted household surveys.