In the global markets, there is a lack of interesting ideas and today, against the backdrop of the relative August calm in the financial markets, ECB President Mario Draghi will deliver a speech. The speech and comments of the head of the ECB will undoubtedly have an impact on the market, and in view of the fact that many participants of the financial market traditionally are on holiday during August, we can expect a price surge in volatility during the speech. Most likely in the speech of ECB President Mario Draghi there will be no unexpected statements that can provoke significant price movements in the markets, but you should be cautious not to overload your positions with excessive margins, remembering that liquidity in the market in August is not at its highest level. Of course, hints that the ECB is not going to reduce liquidity will support the demand for risky assets in the short term. But in this case we should not expect a rapid growth in the stock markets. Current prices for risky assets already include such statements.

Meanwhile, China managed to stop the falling impulse of slowing down in the economy, by pumping liquidity into the financial markets. Along with this, China's largest state banks are actively supporting large infrastructure projects, which in turn makes it possible to compensate for the outflow of private capital. Such macroeconomic events push up indices of industrial metals, which are near their highs over the past few years.

In general, before the economic symposium in Jackson Hole, which will take place at the end of the week, the markets will consolidate near current levels. The time for revision of existing positions and entry into new ones, most likely, is after the announcement of the results of the symposium.

Care: These reviews are a private opinion of ARUM CAPITAL and are provided for information only. In no way can the provided analysis be considered as an action signal, neither is it any sort of investment advice (for the purposes of EU Directive 2004/39/EC). ARUM CAPITAL waives any liability for the trading results which may arise after using these reviews. These materials contain NO warranties or guarantees, either direct or implicit, on the precise, complete or confirmed character of the details they contain.

 

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