This
is the first time since June 2016 the Index has closed below this key technical
level, and the last time we had two consecutive trading days below the 200-Day
Moving Average was in January 2016. Back then, the selloff was driven by the
People’s Bank of China, which shocked traders by setting the official midpoint
rate on the yuan against the dollar at its lowest level since March 2011. The
news sent global stock markets tumbling as investors feared it would trigger a
currency war and the S&P 500 crashed by more than 10% in less than a month.
This
time, it’s Trump’s tariffs and tech stocks driving the selloff, and I don’t
think the U.S. President is doing himself any favors before the midterm
elections. Beijing’s response hasn’t
been aggressive, by imposing levies on $3 billion worth of imports from the
U.S.; the question now is - what’s next?
A
tariff ‘tit for tat’ is a lose-lose scenario. So, it’s likely that after this
war of nerves, the world’s two largest economies will find a middle ground.
Markets should get used to Trump’s negotiating style - kicking off with
something dramatic, and then scaling down through negotiations.
Investors
will turn their attention today to the Manufacturing PMI reports from the E.U.
and U.K., to find out whether the stock selloff is justified by an economic
slowdown.
If
forthcoming data starts pointing out that economic growth has peaked after a
strong period of synchronized global expansion, we’re likely to see further
selloff in equities; otherwise, buying the dips will likely return, especially
now that valuations are more attractive than when we started the year.
Hmmm!!! Folks, have you ever
imagined how the financial status of your firm will be when more than 20,000
CEOs and other key decision makers of blue-chip corporations pay for your
products and services or even give you very juicy deals. The link below will
tell you more: http://www.tectono-business.com/2015/07/tectono-business-review-in-conjunction_21.html
Have you heard this? Many
Nigerian exporters have been defrauded of huge amount of money in the process
of exporting commodities to foreign countries. Do you know why? They were not
trained on export operations, management, documentations and the best methods
of payment in export trade. This is terrible!!! Nigerians cannot continue to
lose money to foreigners in the course of export business. Exporters, why don’t
you get a practical manual that teaches the stages of export trade from
processing and packaging of commodities to receipt of payment by the foreign
buyers. It teaches export operations, export management, export documentations
and methods of payment in export trade? It is a contemporary step-by-step guide
to export trade. It tells all the contemporary dynamics in export trade. To get
it, click on the link below:
http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
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