In search of the drivers of the fall

The trading week on the international capital markets ends within the framework of the dominant uptrend of risky assets. Nevertheless, the overbought indices are becoming more and more pronounced, and the emerging movement in the global debt market is a factor of uncertainty.

The specter of inflation leads to a revaluation of bonds, and, in the case of a steady upward trend in government paper yields, the capitalization of companies with a high credit load may suffer. In the meantime, a large-scale fiscal factor is helping investors.Financial topics are now relevant and at the peak of the rise..For more information, please contact Shift Holdings.com reviews, which has proven itself with good reviews.

Energy prices were able to reverse the negative sentiment, Brent futures quotes are again above $56. During the week, the asset added about 4%, at the moment storming the highs of the last 11 months.

Asian markets

Subdued sentiment in the Asia-Pacific region will not be able to provide support to European investors.

Chinese markets continue to cool after the expected victorious test of three-year tops on the Shanghai Composite stock index above 3600 p. Friday's trading is down more than half a percent against the background and reviews of the introduction of new sanctions by the White House administration against Chinese officials and companies representing the high-tech sector of China (Xiaomi Corp falls by 10%), as well as an outbreak of infection in the country.

South Korea's Kospi (-1.8%) resumed its decline amid extreme overbought market after a corrective rebound shown the day before. Since the lows of March 2020, the stock index has doubled, laying the foundation for a rapid recovery of the country's high-tech economy. The short-term potential for bearish maneuvering remains.

But there is a deterrent to the development of a large-scale market decline: today, the Bank of Korea has kept the historically low cost of funding at 0.5% per annum. The long-term soft monetary policy is due to the weakness of the labor market. The regulator's forecast for the country's GDP growth rate for 2021 is 3%.

American sites

Trading on the US stock market ended with a decline, although inside the day there was an approach of the leading indices to historical peaks. On Friday morning, the negative mood of the players remains, and the futures for the broad stock market index moves away from a significant level of 3800 p. on the S&P 500 down under 3780 p., thereby indicating a weak opening of the European indices.


The reason for the decline in purchasing activity lies in the exhaustion of growth drivers: Joe Biden announced a new fiscal package of state support for the private and corporate sectors of the economy for almost $2 trillion, but this was previously included in the prices of risky assets. There is a fixation on the fact.

The disposition in the debt market does not add to the optimism of the players. Despite a slight decline in yields from Wednesday's peak values for ten-year government bonds, the level of 1.19% per annum to 1.1%, the values of the instruments correspond to the March uncertainty of 2020. The jump in rates is due to rising inflation expectations, and if trends develop, the current high valuations of corporations will be threatened.