The American stock exchange under the pressure of fears
After the celebration of independence Day markets closed the trading week mixed enough and not giving them a clear reference point in the further direction of movement.
Speculation about a confrontation between Donald trump the current composition of the fed continues. Meanwhile in China there are rumors that the Central Bank does not rest on its laurels and will continue to take steps to support the growth of the economy. Again talking about the devaluation of the yuan, which needs to overcome the mark of 7.0 for one dollar.
The U.S. has repeatedly accused the Central Bank of China currency manipulation. Today the national currency of the PRC were reduced to the maximum value from the middle of may – to the level of 6,8881 per U.S. dollar.
This process can explain, if you listen to Donald trump about currency wars. Then the policy of the Chinese Central Bank ceases to amaze. According to the official representative of the State administration of exchange control of China Wang Chunying, the economy is stable, and the existing external risks – complex. To maintain and increase the investment attractiveness of projects of Chinese exporters, and devalue.
Simultaneously, Donald trump has renewed criticism of the fed. The President believes that members of the fed don’t understand anything about economy and finances, so now he is interested in changing the composition of the Department. In particular, it addresses two of their candidates to the Board of governors of the regulator – they should change the post Jerome Powell.
Looks like Donald trump lays the Foundation for the replacement of the leadership of the Federal reserve in 2022, when the term of the presidency of Jerome Powell. However, to fulfill his plan, trump needs to be re-elected for a second term.
Morning trading on the stock exchanges of countries in the Pacific and South-East Asia are in the red zone. Futures in America do not give a signal about the new high on wall street. Maybe Europe and America will meet the morning in a minor key.
Waiting for the reaction of the American and global investors to the actions of the people’s Bank of China and monitor risks.
Head of analytical Department,
“International financial center”