Gentle falls on Wall street waiting for Trump’s announcement about China. The US President plans to offer a expected press conference (scheduled for eight in the afternoon, Spanish time) in which you can announce some type of measure against Beijing by the new security law approved for Hong Kong.
China has made a “big mistake, we can’t let this go unnoticed and they will be responsible for it“Larry Kudlow, Trump’s top economic adviser, has warned. Trump may” consider more aggressive measures, such as the same trade rules apply to Hong Kong as to mainland China, in the future, “say experts from Danske Bank.
“The question is how far will Trump go, since removing Hong Kong’s special status would likely trigger negative market developments, which would affect global risk sentiment and could harm the US economy, as it would further deteriorate the relationship with China, “added these analysts.
Internally, the riots in minneapolis The death of a black man detained by police has sparked a wave of protests across the country as the coronavirus outbreak continues. This matter has caused a new clash between Twitter and Trump, because the social network has launched a notice about one of its tweets for extolling violence.
By technical analysis, the S&P 500 turned lower Thursday when it was clearly overcoming resistance from 3,000 points. The selective is quoted in levels of 3,030 points, at 10% of its all-time high in mid-February.
In other markets, the West Texas oil falls 2.5% to $ 32.84. Besides, the ounce of gold rises 0.8% to $ 1,742, while the euro It appreciated 0.35% and was changed to $ 1.1115. The European currency maintains its strength after announce the European Commission a rescue fund of 750,000 million euros. Finally, the profitability of 10-year American bond falls to 0.67%.
At a strategic level, the ‘fear of missing out’ (FOMO) is a psychological pathology described as “a generalized apprehension that others might be having rewarding experiences from which one is absent.” And, right now, there are many investors who are not at all happy with missing the “rewarding experience” that those who entered with the March bump are living and accumulate revaluations of 30% on average.
So they choose to buy stocks embracing the idea that the rebound will continue, that good news will proliferate and, with that way of acting, they are in turn giving feedback to the rebound. However, running after the market leads to hasty decisions whose consequences may not be good. The risk is that instead of good news, the bad start, in that the bags take the rest they deserve and everyone who is entering now ends up caught.