US stocks: Twitter is the best weapon against trump fall
The dynamics of yesterday’s trading on wall street was caused not by some significant event or macroeconomic data, and the verbal intervention of Donald trump. It’s his activity on social networks.
If not for Donald trump, yesterday the markets have continued correctional movement down. The formal reason for this was: published data on the growth of industrial production, or rather the drop in its rate in April. Most global investors did not like it. Statistics showed that the level of expansion of industrial production slowed down by -0.5%, although it was laid, in April, the rate will be zero. But alas, the industrial production in the U.S. is slowing, as well as in China.
But I must admit that the Chinese company Alibaba Group, which specializiruetsya on the sale of goods via the Internet, it doesn’t hurt to show a compelling growth business. Thus, the net profit for the three months 2019 increased from 7.56 billion yuan (2.88 yuan per share) to of 25.83 billion yuan (of 9.84 per share). This is a 3.85 billion in dollar equivalent. In this case the adjusted profit amounted to 8.57 yuan per share, while investors and analysts had forecast a figure of 6.56.
Naturally, the market reaction was immediately negative. But there it was. After the opening of trading on wall street, the world welcomed the publication in networks the opinions of Donald trump. The US President said he was not going to enter the customs duties on products of the European industry. This was yesterday a basis for positive closure of markets.
However in the evening it became known that trump will this week sign an order which will prohibit American companies to use telecommunication equipment 5G standards, produced by Chinese company Huawei. So the trade war was on the economic map of the world and not gone anywhere. Only it develops in waves, until its end is still very far away.
Head of analytical Department,
“International financial center”