US stocks mired in political intrigue

  • And
  • +A

The statements of Donald trump and Jerome Powell had yesterday influence on the market. On wall street rejoice at a low rate and the possibility of some time to live in conditions of cheap money that keeps the American market for maximum values in history.
One of the reasons for the demand for risky assets was the news from China. The representative of the Ministry of Commerce of China Gao Feng said that the country is interested in the forthcoming foreign trade transactions and is in active negotiations with the United States. The abolition of duties is an important precondition for a comprehensive deal between the two countries. The US stock market lives in expectation and hope. But how long have to wait is not clear.
Liquidity, which the fed presented in September, keeps the American market at a level above 3,000 points. Coveted 3 111,13 item closer. Yesterday the broad market index of U.S. stocks Standard & Poor’s 500 closed trading at another record high, as strong results of the report, the global retailer Walmart leveled a gloomy forecast by Cisco.
Report Nvidia, another monster sector, hi-tech, hinted to wall street in the morning on continued growth, but yesterday combined dynamics still prevailed. The main pressure on us stock indices had a weak macroeconomic data from China, and that the excitement regarding the imminent signing of foreign trade transactions is gradually disappears.
The most important signal for the market was yesterday’s speech President new York fed, John Williams. According to him, current monetary policy of the United States fully corresponds to the situation in the economy. Simultaneously, the head of the Federal reserve Bank of St. Louis James Bullard said in an interview that the fed’s actions to reduce base interest rates were faster, which is why the country’s economy is now in good condition.
This suggests that the base rate in the U.S. financial system in December and can not lower it. In fact, the fed has already done it and can now easily watch the processes in the economy of America.
All successful investments.
_______________
Roman Blinov,
Head of analytical Department,
“International financial center”