Contrary to the stance of the previous US presidents, Trump has had quite a direct influence on the progress of the markets, in addition to the policies that effective, provoking with their noise, losses and large gains, although that short-term. Twitter has been its megaphone and since three weeks ago it has restarted the rhetoric confrontation with China over the trade war, investors have not had much room for big decisions, which is why despite recent declines, The main indexes in the world are only a few days' walk from reasonable increases, or about 6%, of historical highs, being also close to the average of one hundred days and two hundred days, which shows that in recent months the movement has been relatively contained. Yesterday and Monday after Trump said he was still not prepared to make a deal with China, a comment came out in comment mode in the main Chinese newspaper about the possibility of the Asian country using rare metals as a throwing weapon in the trade dispute.
The fact that the United States does not produce such metals, which are essential in important technological sectors, whether in the production of iPhones, batteries or precision weapons, and the reality of China holding the overwhelming majority of the world's production, in addition to the vast quantities of proven seventeen or minerals of the group, created another verbal conflict front that reinforced investor pessimism in a peaceful solution to the misunderstanding, after almost four months where optimism prevailed and the slogan was, if not, but when an agreement would be reached. In the S & P 500, all eleven sectors were red, with the most negative performance for the second day of the group of companies known as asset refuges, such as utilities and real estate, while financial and the materials sector they narrowly escaped losses.
At the end of the session investors ended up pulling the market by shortening the falls to values close to the opening, which may give some encouragement to the European squares in the early hours of the day, however much of the movement will be dictated by the quality of the various economic data that will be known about the US economy, such as GDP and some inflation figures.
Today's chart is XLU, the time-frame is Diary
The utilities ETF, which made an apparent false fall in the downstream channel (blue), has been somewhat inconsistent with normality and is now correcting its record high reached on Friday.