The US stock market recovers after big drop

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Last week on wall street was marked by one of the largest one-day drop in the industrial index Dow Jones Industrial Average this year. The scale of sales of U.S. stocks was so great that Donald trump held a conference call with the leading bankers and representatives of the investment-banking community of the United States.
The President urged the heads of JP Morgan, Bank of America and Citigroup to tell him about the state of the economy. In the opinion of the heads of conglomerates, the situation in the consumer sector remains good, but it could be better if managed to achieve the termination of foreign trade and currency wars between the US and China.
Representatives of banks also believe that in the current environment of manipulation of a key interest rate, the fed is not affected by the economic situation, and now global investors pay more attention to the contradictions between China and the United States. Markets on this occasion rose to the end of the week, offsetting the fall. But better still.
Last week comments by the President of the United States on the continued dialogue with the PRC supported the markets. However, the currencies of developing countries yet little change, they are likely waiting for more serious positive. Falling yields of US treasuries are now trying to recover.
Wednesday will be published Protocol of the July FOMC meeting, which is waiting for a decision on reduction of the key rate. The interest is fueled by the fact that the past reduction in the key rate was the first in the last 10 years. All are inclined to think that the final text of the document can add volatility to the global capital markets and raw materials, but also affect the mood of the international monetary market.
In my opinion, even more attention will get the fed Chairman Jerome Powell, or rather his performance this Friday. The markets lay the one chance of a rate cut, the fed in September – more than a quarter of a percentage point.
On the background information from the American channel CNBC, which refers to the “fat cats” on wall street and their point of view on the level of cost of resources in the financial sector, the market appeared again affair.
Roman Blinov,
Head of analytical Department,
“International financial center”