Short Comment
US Government was shaking the markets. S&P500 plunged more than 3% for the last week with the politics and messages from US Federal Reserve. HangSeng which represents Emerging Markets went down by more than 5%. In fact, HangSeng is plunging by almost 3% in today market. The down led to strong safe assets. Yield of 10year US Treasury is being transacted below 1.8%, and USDJPY is targeting 105.
The main issue which is shaking the markets is the trade-war between the US and the rest of the world. US President Donald Trump announced to impose 10% tariff on $300bn import from China. Considering tariff of last time was 25%, the number of 10% means that there still is the enough room for the negotiation.
However, market participants are losing their rationality for the issue. Intertwined with the concern for coming recession, Research Analysts in the banks are warning that the recession could come much sooner than expected, maybe in three quarter, unless there is appropriate agreement between Big 2. Anyway, the event is proving that the volatility is still living on the markets.
US Government was shaking the markets. S&P500 plunged more than 3% for the last week with the politics and messages from US Federal Reserve. HangSeng which represents Emerging Markets went down by more than 5%. In fact, HangSeng is plunging by almost 3% in today market. The down led to strong safe assets. Yield of 10year US Treasury is being transacted below 1.8%, and USDJPY is targeting 105.
The main issue which is shaking the markets is the trade-war between the US and the rest of the world. US President Donald Trump announced to impose 10% tariff on $300bn import from China. Considering tariff of last time was 25%, the number of 10% means that there still is the enough room for the negotiation.
However, market participants are losing their rationality for the issue. Intertwined with the concern for coming recession, Research Analysts in the banks are warning that the recession could come much sooner than expected, maybe in three quarter, unless there is appropriate agreement between Big 2. Anyway, the event is proving that the volatility is still living on the markets.
However, markets' fundamental is not dead yet. Global liquidity from major central banks including US Federal Reserve, European Central Bank, and Bank of Japan is playing on the ground, economic situation in the US is still supporting the corporate, and yield spread between 2year and 10year US T-Notes has enough time to touch minus level.
Plunge at this time could be the last 'deep' for 3,200 of S&P500. The trade-war has been 'comes and goes' issue. Now, it is 'Comes.' I believe that 'Goes' will be there soon, and we need to wait for appropriate time to buy the stocks.
Plunge at this time could be the last 'deep' for 3,200 of S&P500. The trade-war has been 'comes and goes' issue. Now, it is 'Comes.' I believe that 'Goes' will be there soon, and we need to wait for appropriate time to buy the stocks.