The US stock market lost landmarks
All day yesterday, trading on wall street has been sluggish and ended lackluster. Major indices of the U.S. stock market marked time. Either the markets are waiting for news on corporate reporting, or comprehend speculation the U.S. Federal reserve and Donald trump. Or maybe they just grow tired of Pro stock and they want to make sure the outcome of the Sino-us trade relations.
The confrontation between trump and the fed is continuing and no end in sight. Most surprising for the power brokers of the capital market is that with China the issue is not yet resolved, and official Washington was developing a new plan for foreign trade struggle with the Old world. There were rumors about new sanctions against European manufacturers. Answering this in an interview with CNBC, the Minister of economy and Finance of France, Bruno Le Mayor emphasized that the new trade war between the US and the EU regarded it as a political mistake. The global economy is slowing down, and all the participants understand it.
So, while global investors evaluate the risks that wall street lives on rumors and news. Donald trump continues the policy of pressure, the main regulator of the financial world. Having tired of constant dissatisfaction with the actions of the fed, he decided to go the other way, and now his goal is to subdue the independent fiscal authority. As they say in the American press, trump is going to change the composition of the fed. This can lead to the formation of manual control of groups loyal to the President of the people and the change of the vector of action.
Until all my thoughts together and outline new ways in which you can go stock indexes, I’m waiting, how will close this week. Yesterday’s data on unemployment were very convincing, but the market they are not relished, probably because of the speech of James Bullard. He spooked the market by the inversion of the yield curve on us treasuries. Bullard believes that the effects of prolonged inversion for the U.S. economy could be negative, so ignore it.
________________ Roman Blinov,
Head of analytical Department,
“International financial center”