America’s stock markets: Strong fluctuations weigh on the stock exchange trading


    The fluctuations on the international stock markets continue. After heavy losses on Wall Street on Monday, the sell-off continued on Tuesday, as Asian stock exchanges. In Europe, prices recovered in the course of trading, after initially stronger losses. The Dax turned in the course of trading to the Plus and traded in afternoon trade with the friendly trend. The American stock markets opened on Tuesday with significant premiums. On the occasion of the fluctuations, the fear of a weaker economic growth due to trade dispute between the United States and China was again. This loaded on Monday and Tuesday the strong decline in crude oil prices, which traders attributed to a Glut.

    Norbert Kuls

    Freelance writer in the business.

    F. A. Z.

    “The sell-off continues to take place in an orderly framework,” said J. J. Kinahan, who is responsible for the us direct Bank, TD, the system Ameritrade strategy for stocks. “I think it is not so much to aggressive a seller as to a lack of interested buyers”, concluded he. Traders held back may be in order on Wednesday scheduled interest rate decision of the American Central Bank to be seen. In the markets was largely expected with a further increase in key interest rates.

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    traders will turn their attention but the further Outlook and the comments of the Fed Chairman Jerome Powell, there was least evidence for a slight slowdown in American economic growth, such as in the housing market. In addition, the us President, Donald Trump had criticized the planned interest rate hikes by the Fed repeated. On Monday, Trump had referred to it on Twitter as “incredible,” the Central banker wanted to raise interest rates. His predecessor had not made a public interest decisions of the Central Bank. Powell had said last month in a speech that the Prime rate move is currently in the vicinity of the neutral interest rate, i.e. the interest rate, acting in the monetary policy is neither stimulating nor dampening. On the stock markets this has been understood as an indication that the Fed will act in the coming year, more careful.

    apply rapidly rising interest rates as a poison for the stock market, because the financing of companies via bonds or loans more expensive. In addition, higher interest rates on government bonds, investors provide a safer Alternative to risk assets such as equities. The now for almost ten years continuous bull market was spurred by the long time of extremely low interest rates. The Fed had lowered the key interest rates in the Wake of the financial crisis in 2008, to almost Zero, and only in December 2015 to the interest bolt.

    “If monetary policy changes direction, it will come to a Crash”, is afraid of Steven Ricchiuto, the United States competent chief economist at the Japanese securities house Mizuho Securities. “It depends on a lot of it.” Particularly by the trend in Interest rates, the prices of smaller American corporations were charged. American in addition to values are according to the Russell-2000-Index in a bear market because their rates have declined since the recent peak to more than 20 percent. Default value barometer such as the Dow Jones, the S&P 500 and the tech-heavy Composite Index of the electronic exchange, the Nasdaq have not been so strong. “The market is treacherous,” said Paul Brigandi, head of securities trading at the Fund company Direxion. Investor sentiment have changed forever. “In the past, lasted setbacks are only short. This is different this Time.“ Brigandi noted that investors in a bubble for the first Time since the Bursting of the speculative Internet after the turn of the Millennium, in this year of Setbacks is no longer automatically used to purchase shares cheaper rates.

    During prolonged bull market phases, and even during the financial crisis bear market ten years ago, investors followed this rule of thumb. The “Buy-the-Dip”rule is that investors should buy when Price pullbacks in order to get cheaper entry-level courses. In a bull market phase this is a successful strategy, because the share prices rise after setbacks. In a bear market, this strategy does not, however, because the courses move in a longer-term downtrend.

    the uncertainty of The investors makes the strong money outflows from mutual funds. According to the Bank of America investors have pulled out in the second week of December, a record amount of 39 billion-Dollar global investing stock funds. “We have warned that the markets in 2018 were temporary setbacks-prone, if the American sabre-rattling in the trade policy in the act would be implemented,” said Richard Turnill, global chief investment strategist of the Fund management company Blackrock. “But the magnitude of the geopolitical impact on markets has surprised us.”