Asset Allocation for July 2017

European stocks were appreciably weaker than American and Asian assets in June as EUR has shown stable growth. Mario Draghi intensions to toughen ECB monetary policy and cooling fears of sovereign risks in Greece and Portugal put EUR currency in short term bull trend.

Tech stocks in US were among main losers in June. Investors started to revalue tech sector estimates and partly took their profits from NASDAQ constituents.

Oil prices showed dropdown on the information about oil reserves growth in USA and OPEC representatives’ statements not to reducing oil output in the future.

Gold tested resistance level at 1300 for the third time during last year and went down. Trades build into prices the possibility of further FED rate growth in USA this year.

To add we focus on strong impulse in grain prices. A number of statements from main grain exporters about difficult weather conditions spurred agricultural prices to year-to-year heights.

Threat and challenges in world markets:
-  Qatar crisis – escalation in Persian Gulf
-  Monetary policy tightening by US FED

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