DJIA eyes new highs as stocks absorb flurry of negative news
Fawad Razaqzada September 27, 2019 7:41 PM
At the same time, several central bank members have come out in support of more monetary stimulus.
The major US indices have been spending several days in consolidation near their recent highs. As they haven’t dropped more materially on the back of what should have been bearish news (e.g. Trump’s impeachment inquiry; weak macro pointers from Germany and US, and ongoing uncertainties over the US-China trade issue, Brexit and the Middle East situation et. al.) is not exactly bearish, is it? In other words, the markets have absorbed bad news through time than price action. What can’t break you makes you stronger. At the same time, several central bank members have come out in support of more monetary stimulus. Today, for example, the Bank of England’s Saunders said that it was “quite plausible” the next rate move will be down even if we avoid a no-deal Brexit. Those comments sent the FTSE sharply higher. Alongside the European market rally, US index futures have gained ground, suggesting Wall Street will open in the positive later. And given the recent trend of Fridays being rather bullish for the markets, I wouldn’t bet against a sharp rally for the US indices today. Obviously, the big assumption here is that we won’t hear any majorly bad news e.g. a surprise announcement by Trump that the planned US-China trade talks are off. That would be something, right!? But if there is no such news then we could see the markets drift higher into the close.
Source: Trading View and City Index.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.