The US stock market demonstrates the resilience

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Yesterday the American stock market showed vitality. The outcome of the auction was a slight increase in two major indices – the industrial index Dow Jones Industrial Average and the broad market index U.S. Standard & Poor’s 500. In contrast, the NASDAQ Composite remained in place. In fact, the stock market ignored the employment data.
The labor market in the United States was almost at the maximum, because the number of applications for unemployment benefits last week fell to the lowest since December 1969. Macroeconomic statistics suggests that the number of Americans applying for benefits the first time for the reporting week declined by 10 thousand to 202 thousand.
I think the market could be excited, but global investors are busy awaiting the outcome of negotiations between the U.S. and China. It negate the other information about it.
A meeting of the officials of America and China should encourage the market for new purchases of risky assets. So on wall street expect the ninth round of negotiations will mark a new breakthrough in economic relations between the two countries. These expectations are to some extent justified, because after meeting can announce the date for summit between the two leaders, Donald trump and XI Jinping.
Recall that under the terms of commercial transactions in Beijing will be given until 2025 to comply with the obligations of the procurement of goods from the United States and simultaneously allow U.S. businesses that have manufacturing facilities in China, go to the level of complete control over its operations. At least, according to the international information-analytical Agency Bloomberg.
Donald trump said the other day that the American economy remains strong, despite the “unnecessary and destructive actions” of the fed. We can assume that these words are directed to China, as long as the negotiation process goes, the authorities of each country is driving you.
So, this week, the official Beijing has decided to reduce the number of state fees, registration fees and service charges. It happened immediately after the reduction of VAT rate for several sectors of the economy, China needs to lighten the load for businesses and individuals. in short, the Chinese are difficult negotiators and very clever business people, leading a very careful foreign policy. It is therefore important to await the outcome of the negotiations – they will depend on the overall geopolitical and economic picture of the world.
Roman Blinov,
Head of analytical Department,
“International financial center”