Satendra Singh | Sep 13, 2019 23:34
On analysis of the movements of S&P 500, in different time frames, I find that despite good boost, provided on Thursday after trade concessions between Beijing and Washington gave hope that the two largest economies in the world would soon settle their differences; House Asks Tech Giants for Documents in Antitrust Probe, S&P 500 has been constantly showing exhaustion.
I find that the trade conflict has taken a toll on U.S. manufacturing and tempered global growth, with the International Monetary Fund forecasting that the tit-for-tat tariffs between the United States and China could reduce global GDP in 2020 by 0.8%. On the other hand, Investors are now expecting the U.S. Federal Reserve to cut rates at its policy meeting next week for a decision on interest rate cuts, especially after the European Central Bank announced a sweeping stimulus drive on Thursday to prop up the eurozone economy.
No doubt that the U.S. equity indices gained the bullish sentiments as the Commerce Department data showed that retail sales rose 0.4% in August, lifted by spending on cars, building materials, healthcare, and hobbies. Economists polled by Reuters had forecast an increase of 0.2%; but the U.S. President Donald Trump calmed markets on Thursday after saying he was potentially open to an interim trade deal with China, although he preferred a comprehensive agreement. I find that this interim trade deal seems to be delayed as far as up to 2020 elections, which may keep the uncertainty in global equity markets at the same pitch; as the steady gold futures look evident enough to define the current uncertainty; which seems to remain for a long time. For watching my upcoming video on S&P 500, subscribe to my YouTube channel “SS Analysis”
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Written By: Satendra Singh
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