- The S&P 500 closed 0.64% on Monday and Future S&P fell 0.69% pre-opened in New York. A monthly survey on the Chinese services sector fell to its lowest level of all time, excluding the cocovio pandemic, suggesting that the trade war of President Donald Trump strikes the second largest economy in the world, but shares on the Composite SSE increased by 1.1%. Investors seem to wait nervously before the Fed's rate of Wednesday rate and Trump's reaction.
The markets in Asia and Europe have largely increased this morning while S&P term contracts fell by around 0.7%, establishing the wide American index for a second day of losses after a sequence of nine days of victories while investors nervously await the FED Wednesday interest rate decision – and the reaction of President Donald Trump.
Wall Street is almost sure that the Fed will maintain stable interest rates in the range of 4.25-4.50%, but analysts expect Trump to increase his attacks against the president of the Fed, Jerome Powell, so as not to lower the rates.
“The attacks on Powell will increase a lot,” said Jeremy Siegel, professor emeritus of finance at the Wharton School of the University of Pennsylvania interview Monday. “Trump, I think, will intensify the escalation.”
Such an escalation could frighten nervous investors, notes Ey-Parthenon chief economist Gregory Daco.
“We warn that even the perception of political influence on monetary policy could disrupt the markets,” he wrote in a note. “A loss of confidence sustained in the Fed autonomy is likely to count the expectations of inflation, to lift long -term yields, to increase debt costs and to undermine the demand for dollar assets.”
The fact that markets can start taking into account the increased uncertainty of the future of Fed leadership can be seen in the recent increase in the risk of American assets, Daco wrote.
Despite the concerns of FED leadership, investors can reconuse themselves in the resilience of the world economy – so far. “Data send a simple message that global growth remains solid,” write Bruce Kasman and his team at Jpmorgan Chase. “Despite a noisy stand in the United States, world GDP increased to a 2.4% trend at 1T25. Available April readings show sustained momentum while we are transforming in progress.”
Here is an instantaneous today's action:
- The S&P 500 decreased by 0.64% yesterday after nine consecutive days of earnings.
- Announcement by President Trump of a 100% tax on the production of American films in foreign countries sent Netflix Down 2%, Primordial down 1.6%, and Disney down 0.4%.
- Future S&P Discuss more gloom today: contracts fell 0.8% premature negotiation.
- THE Vix The fear index is up 9% today.
- But Asian markets Rose this morning: SSE composite of China increased by 1.1% (and increased by 1.64% YTD). Nikkei 225 from Japan was up 1%.
- The Stoxx Europe 600 fell 0.7% at the start of negotiations.
This story was initially presented on Fortune.com
