Stock markets are disappointed with the statements of trump
Suddenly and very slowly began the trading week. In his twitter account us President said that it would increase the duty from 10% to 25% on goods worth $200 billion from China, and to introduce additional went at the rate of 25% on goods worth $325 billion.
This turned out to investors like a bolt from the blue, after the last few weeks the leader of the US has signaled the impending agreement between Beijing and Washington.
From the opening exchanges of the world came under pressure. Shanghai Comp loses -5,58%, German DAX30 cheaper on -1,68% index Mosberg -0,94%. Index futures fall on DOW30 -1,93%, S&P500 -1.84%, NASDAQ – 2.17%. And apparently the chances of trade “in the green zone” today, no. The most obvious effect of this day will be to work on lowering the American companies and the first short-lists gets Boeing Co (BA).
This company has the highest specific weight in the calculation of the index DOW30 in case it does drop (and it already is falling), certainly to aim in the direction of the South. Moreover the weekend the next plane Boeing 737 was rolled out in shallow water in Florida. None of the 143 people on Board died, 21 people were hospitalized. In General not critical, the limit of the confidence the company has already exhausted catastrophes 737 MAX, and most likely this incident, investors will not be softened.
Also worth mentioning is the macro statistics of the USA published last week. The fed kept rates and stated about the coming long period of stagnation in the process increases. This is somewhat supported investor interest in U.S. securities, but data from the US labor market has caused too many questions. How can unemployment drop from 3.8% to 3.6%, but decrease the share of economically active population from 63% to 62.8%? Moreover discouraging the growth rate in hourly wages, which is not held on to forecasts and remained at the level of the previous month.
Today we do not expect however any important data on this all eyes will be on to trade wars between the US and China, as well as new reviews of Donald trump.
_________________________ Dmitry Inogorodniy,
“International financial center”