What to expect in the next trading week?

The week went into the next stormy drama about the trade negotiations, Brexit and the state of the world economy. Negotiations started encouragingly and gained momentum, but the relationship between Trump and Xi seems to begin to cool slightly.

The first doubts arise whether there will be a first ever meeting between the two to sign the deal and, if so, whether it will be signed by China and how much it will meet the demands and expectations of the Chinese at all. World markets began to crack under suspicion, and data from Europe, the US and China only finished them. The ECB returns the incentives and starts throwing "rescue belts" to banks to boost the economy.

Brexit is approaching that date of release (March 29), but instead of getting more clarity, more and more answers are coming up, the thread is getting tangled up, and event scenarios are constantly expanding or changing their combinations. China's economy continues with bad data, and the US is beginning to see the first cracks in the labor market. Markets again started to shine in red, again talking about recession and stock market corrections.

Next week, we expect the sentiment to stay until a positive catalyst appears - whether it is macroeconomic or fundamental. The next Tuesday (12.03). for Europe will be in focus the second vote of the Brexit proposal of May. The speculation that May will be able to put enough pressure on the opposition this time to back it up otherwise runs the risk of Brexit's overall realization and spiral of successive votes until one of the scenarios is accepted. Negative developments will contribute to strong turbulence in the FX and UK equity markets.

Brexit's vote will be the main market-leading event. For a moment the remaining risks will remain on the background, but they will not go unnoticed.

Read more:

• Risk off after the escalation in the Middle East, markets are recovering in a period of calm
• The macroeconomic events for today’s trading calendar
• The US government has confirmed the attacks, Trump is calling an emergency staff meeting
• Has the war between Iran and the US started?
• US markets remain under pressure, traders await Iran’s response