Global Markets Recovering, Greenback Stays Unstable

Market Reviews

Global markets are recovering today. European indices rose sharply, when global markets recovered from a demonstration of their worst week in recent years. Euro slightly strengthened against the US dollar. The American currency remained moderately lower against other major currencies. The greenback had broadly strengthened after the US Congress passed a two-year budget agreement early Friday morning, ending a brief government shutdown. The agreement is set to boost federal spending by almost $300 billion and suspend the debt ceiling for a year.

Bank of England will slowly raise rates, and rates will not return to the levels observed in the past, said the chief economist of the regulator Andy Haldane. The central bank of Great Britain remains concerned by the fact that inflation remains well above its target. A member of the Monetary Policy Committee of the Bank of England Gertjan Vlieghe admitted that the wages of the British are starting to grow faster, which, along with the continued strengthening of the global economy, support the intentions of raising interest rates.

President of the United States Donald Trump proposed to gradually reduce budget expenditures by $3 trillion for the next 10 years, and the relevant request was forwarded to the Congress. Trump is confident that the government spends more than it earns at the moment, and the draft budget for the next fiscal year will still not be able to fulfill the goal of the Republicans to eliminate the deficit, which amounted to about 666 billion dollars in 2017 (in 2019 it is predicted at the level of 1.1 trillion dollars).