The worst day for Wall Street for the last 8 month

US stocks were again hit hard yesterday, when Wall Street experienced the worst day in the past 8 months amid political turmoil in the United States. We are seeing the so-called Trump deal, in which the shares and the US dollar were raised for months on Trump’s promise to be good for business, and also promised to take a less rigid stance towards banks. The bullish slump has disappeared, and we are seeing profit taking on recent moves that have shown record highs. The reason for doubt is the recent accusation and subsequently the creation of an independent supervisory board to examine allegations that Trump and / or the Trump administration have colluded with Russia in rigging elections in the United States. Former FBI director Robert Mueller was named special prosecutor of the Russian court, and the market expects that tax and other reforms will give way, as the White House is coping with it. Shares will remain under pressure, as traders are cautious, quickly drop stocks if political instability worsens.

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How US political concerns affected at equities?

Shares on Wall Street and in Asia are traded in negative territory with increasing US political problems. Caution comes in the light of a note by former KGB Director FBI who said that Trump had called him to abandon the investigation of former national security adviser Flynn, who recently resigned because of secret meetings with Russian politicians in which the media accused him of collusion with the Russians To influence the elections in the United States.

Concerns also leaked to currency markets where the US dollar was hit lower, falling against the major currencies, as we see the USD index, a measure of the strength of the dollar against the basket of currencies, dropping below 98. Continue reading

NASDAQ and S&P 500 shows fresh record highs

Yesterday’s trade showed that the markets were tired again, as we saw that Asian stocks don’t keep up with Wall Street growth, when both NASDAQ and S&P 500 showed record highs after stronger growth in energy reserves due to higher traffic In the crud oil. Nikkei 225 stopped at 20,000 points, adding 0.1%, while ASX 200 added 0.2% after a fairly neutral release of RBA-minutes, in which the Bank was concerned about housing and labor markets, balancing it with Forecast of sustainable GDP growth. In China, as in Shanghai comp. And Hang Seng lost 0.3%, as regulatory concerns mount.

In the currency pair, the dollar remained low, as we saw that the USD index, a measure of the strength of the US dollar against the basket of currencies, remains below the 99 level. JPY found strength, as sentiment fell overnight, prompting USDJPY to fall below 113.50, Canceling strong pressure on the purchase from the end of yesterday.
GBP remains muted ahead of today’s release of CPI, in which we expect a 2.6% growth year-on-year. Continue reading

Risk markets prevail in the markets: gold and Japanese yen are sold out

American stocks and indices traded without any definite dynamics. So DJIA and S & P500 closed relatively smoothly, while the NASDAQ 100 reached a record high due to the growth of Apple shares (market capitalization of companies reached $ 800 billion). Asian stocks and indices traded relatively flatly, following the example of Wall Street and due to the lack of important publications. The only index that lost 0.5% yesterday was the ASX 200. The reason was the disappointing volume of retail sales in the country.

In the foreign exchange market, the US dollar rose overnight. Buyers supported the dollar index, which measures its strength against a number of major currencies, above the level of 99. Continue reading