Summary for the 10th of January 2019


Most of the stock markets in Europe started Thursday in red, but once Wall Street opened with a gain, they ended in a positive close. Stock markets in Asia also opened with a gain on this day. This is the fifth day in a row with gain in the U.S stock market, this indicates more than just a correction from the extensive loses in December.

The trade talk between the U.S and China hasn’t brought any new result, so this is probably not the reason the stock market has been rising recently. The U.S government shutdown and its uncertainty still looms, the shutdown has been ongoing for 20 days now, almost the longest government shutdown in the U.S history. The longer the shutdown, the bigger are the economic consequences, though the stock market doesn’t seem to be affected by this. The reason for the positive sentiment in the market might be due to the recent signals from the  U.S Federal Reserve where it will be patient and flexible with the monetary policy and rate hikes.

The Account of the ECB monetary policy meeting from December 2018 shows that several  members of the ECB are expecting more downside risk in the economics growth in the EU, but they are still indicating that the risks are broadly balanced. The market has predicted a rate hike in the EU in 2019.

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