The global markets ended a week of strong volatility, with a combination of events and factors that led market movements last week and open the way for more volatility this week, influenced by the BRICCET and the US-China trade conflict.
The pound fell last week against the US dollar, falling to a one-week low of 1.2605 per pound this week, before rebounding at the end of the week after British Prime Minister Theresa May announced her resignation on the seventh day. From next June.
ICE Capital founder Shuaib Abedi said that "Sterling has been heavily affected by the attempts of Teresa Mae to get a vote for a UK exit from the EU but has not been able to do so under the opposition. Severe, "which prompted, finally, to surrender and announce its resignation yesterday.
"The markets had previously contained the possibility of May's resignation, so we have seen some gains on the pound as a result of taking profits from speculators who are buying on the basis of common buying and selling the news in their trades, but this bounce remains temporary," Abedi said. Many of the questions left behind by May step down to determine the next direction ».
He explained that «the most important questions that the markets will seek to answer is who will be the next prime minister successor to May, and in the current period, the most likely is in the interest of Boris Johnson, who is a staunch supporter of the exit of Britain from the European Union, Exit, and therefore the increasing probability of winning the race of prime minister will increase the negative situation of the pound sterling, and may push him for further declines in the coming period ».
On the other hand, the markets reacted strongly with the developments of the US-China trade war after the United States decided to put the Chinese company "Huawei" on the blacklist, which caused the US stock markets continue to lose during last week, as gold finished trading last week at levels $ 1284 per ounce, up about $ 10, compared to the closing of the previous week at $ 1274 an ounce.
The Dow Jones Industrial Average finished 0.7% lower in the week, losing 3.5% since the May 5 trade war intensified.
"The continuation of the US-China trade war has been evident since the entry into force of the tariff increase on Chinese goods and the subsequent responses," said Ali Ali Bakr, Regional Director for the Middle East for ACM.com. Done by China to become part of the bite of the fingers of the parties in attempts to get the best conditions for a deal to end this war ».
The Dow has lost 3.5% since the US-China trade confrontation intensified.