› Market review, July 24-28, 2017

Market review, July 24-28, 2017

EUR

At the ECB's press conference, Mario Draghi noted that "the ECB's Board of Governors is considering a possible policy of tightening financial conditions that could create additional threats to the recovery of the euro zone." In fact, the head of the ECB did not really say anything, but market participants perceive the slightest positive in Mario Draghi's speech as an excuse to buy euro.

If we draw a parallel between the statements of the head of the European Central Bank, at each press conference he gives little hints of optimism, and speaks about the normalization of the economy. The QE program will work until the end of 2017, and the market is clearly preparing for the curtailment of the incentive program.


Market review, July 24-28, 2017

GOLD

Gold regained lost positions.

Thanks to another scandal around US President Donald Trump, the US currency index fell and the dollar was falling all week.
Exaggerated forecasts of market participants in the dispersal of the US economy to 3% under the influence of reforms of the incumbent president led the dollar to a 14-year high. But Donald Trump's subsequent statement that a strong national currency will harm economic progress, failed health care bills, and endless scandals surrounding the US president and his family have worsened the mood of investors, businessmen, and the state's macroeconomic statistics.

On Friday, gold broke through the level of 1250, after which to fix profits, the trend lost its force, and the week closed above the psychological level.

At this stage, the potential for further gold growth is limited. Because the euro on the current levels looks overvalued and possible long-term corrections, which will strengthen the US dollar.


Market review, July 24-28, 2017

Microsoft

Since the period of economic crisis, which was in 2008, Microsoft shares steadily gained momentum and grew in price. The corporation has long been number one in the personal computer segment. The customer base is growing every year, which indicates a confident future of the company. This is also shown by a graph that beats more and more records. At this stage, the high point of the chart is $ 73.28 per share.

With that, out of three directions of the company, two show a decline in profits. Therefore, the shares look overvalued. For those who plan to invest in Microsoft, we recommend to wait for the correction.

In the current market conditions, one should take into account the real market value of the stock is around $ 65.


Market review, July 24-28, 2017


Oil

Previous week crude oil started with growth, and finished on falling. Rumors around upcoming OPEC meeting add uncertainty to the market.

With eyes on 24th of July, investors are waiting further cartel’s steps on output level, to coordinate their steps. Market analysts believe that OPEC is to prolong the agreement, though it didn’t have significant influence on output even within the organisation itself, but, also, let’s bear in mind that Nigeria and Libya are increasing oil output.


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