The major stock indexes of the world losing ground while the optimism after the meeting between Xi and cool Trump. Moreover, the yield curve is now little is reversed & # 39; back.
The turmoil again & # 39; hidden market. And within a few days, the market has returned to be optimistic for "angry", according to the operators & # 39; US, generating heavy losses on Wall Street in the absence of & # 39; concrete announcements on the front of the commercial war.
F & # 39; this time, the main indices of the US stock market are dyed red. While the industry Dow Jones lost 3.10% of its value, the S & P 500 selectively and Nasdaq composite fell 3.24% and 3.80% respectively.
Why istumble after the explosion? According to operators from New York, investors are "confused" and "angry" after the rally, because they do not see concrete signs that China and the United States are taking steps to end the trade war.
"On Sunday we thought that both countries had advanced to alleviate their trade tensions, but since then we have not heard anything from China or Xi Jinping, so the market is angry, because rreaġġa & # 39; on Sunday evening for something that could not be carried to a real resolution ", explains Michael Antonelli, trader & # 39; & # 39 equity; Robert W. Baird & Co.
From New York, the operator adds volatility x & # 39; is likely to continue in the coming days, because the market requires "the United States and China to confirm the exact steps that will follow to solve their trade tensions. "
Warning & # 39; investment
Another fear & # 39; to market circles are how close to the curve of Treasury bond yield in the United States to invest, which is considered forecasts & # 39; recession.
With the fall & # 39; 13 basis points that the paper experienced a decade in the past four days, the difference between the bond & # 39; 10 years and the bond of & # 39; two is now only 11 basis points, the lowest level since the subprime crisis.
Although the spread between the two cards debt was approached to zero, this phenomenon has increased as investors sought refuge in & # 39; & # 39 titles, ten years, as low blood pressure.
"The decline in performance is due to a flight to safer assets, people are buying Treasuries to avoid the stock market in recent days," said Antonelli.
Reversing curve sovereign paper of the United States – where short-term rates are higher than long-term rates – is considered a good predictor of & # 39; recessions, because every time curve was reverse & # 39; A recession followed about 18 months later.