Uncertainty in stock markets is growing

Last week was calm. The stock indices in the US and Europe showed an increase. At the same time, the tension of market participants is rising. Investment volumes in alternative assets - bonds, precious metals and real estate show positive dynamics.

On Monday, the dollar index continued its recovery showing an increase of 0.1% to 97.544. The optimism regarding Trump's budget proposal supported the growth of stock indices. The S&P 500 rose by 0.03% to a record high at 2415.82. The Nasdaq index added 0.08%.

Tuesday was marked by the decline in oil futures. The production increase in Libya caused concerns regarding the oversupply in the market. Libya is the only OPEC member, which is dispensed from the production cuts program. European stock markets closed lower. Early elections in Italy raise concerns about the Eurozone security.

On Wednesday, the US financial sector showed losses. JP Morgan and Bank of America forecasted a decline in trade turnover in the current quarter. The S&P 500 lost less than 0.1%, but the financial sector was the leader of the decline, closing 0.8% lower.

On Thursday, Italy's economic statistics came out. The growth forecast for the current quarter was revised from 0.2% to 0.4%. The rate of GDP growth amounted to 1.2% in annual terms, which is also higher than the preliminary forecast. The EuroStoxx index showed an increase at the level of 0.43%.

Friday was marked by the growth of gold. Data on the US labor market turned out to be contradictory. The unemployment rate declined, while the growth of Non-farm Payrolls was below expectations. Uncertainty pushed investors to buy safe assets. The spot price of gold increased by 0.4%.

The main event of this week will be the parliamentary elections in the UK. The new cabinet will discuss the Brexit conditions with Brussels. The European indices and the British pound are expected to be volatile on Tuesday and Thursday. The bearish movement may be used to buy stock indices.