Having reached new all-time highs on Monday’s session, the S&P500 was more restrained in the final record yesterday with clear caution taking over investors at the last hour of trading, which nullified gains that came almost throughout the day. The fall of more than 2% in Google bonds after the company announced below-forecast results negatively conditioned the technology index, not allowing Nasdaq to go out of red throughout Tuesday. In the matter of trade war, nothing new, or rather some news, but as I have been saying, it is no surprise that, despite Trump’s optimism, concrete progress in this process has been nil, and now there is a possibility of partial agreement but not ready to be signed at Asia-Pacific Economic Cooperation which will take place in mid-November.
However, the important thing is set for Wednesday, with the market waiting for a cut of 0.25% in FED interest rates which will be the third move this year. As expected in 2018, except in reverse. The latest US consumer data and US GDP data suggest that the US central bank’s pro-activity may not be very out of place, but it is yet to be confirmed that even a dovish movement will save the largest North American economy. With almost no growth, it will therefore be very important to pay close attention to what Jerome Powell will say after the decision.
Photo by JP Valery.
