Global macro overview for 20/06/2018

In response to US-imposed levies on steel and aluminum, Russia will introduce additional duties on some American goods, Russia's Minister of Economy Maksim Orieszkin announced on Tuesday in Minsk.

Orieszkin added that tariffs will apply to products that have counterparts on the domestic market and ensured that this decision will not affect Russian macroeconomic indicators. "Russia benefits from the right within the World Trade Organization and introduces measures equivalent to goods imported from the USA," Orieszkin said during a visit to Belarus by a Russian delegation headed by President Vladimir Putin. The minister did not specify what goods the duty would be imposed on, but he stressed that the new regulations would come into effect "soon".

On March 8, US President Donald Trump signed a regulation imposing duties on steel imports in the amount of 25% and for imports of aluminum - 10.0%. According to the April statement of the World Trade Organization (WTO), Russia applied to the WTO for damages from the US for import duties.

Let's now take a look at the SP500 technical picture at the H4 time frame. The market has made a local pull-back towards the level of 273.42 and currently is bouncing back again. Nevertheless, the momentum remains weak and the stochastic indicator is still pointing to the downside, so this might be so-called "dead-cat bounce" that will end soon and the control over the market will be taken over by bears again. The next technical resistance is seen at the level of 277.51.

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