Yesterday’s sharp drop in technology led by Apple's (NASDAQ:AAPL) fall of 5% pushed the global market downward. Hard hit is the technology index NASDAQ closing at -2.78%, followed by the Dow Jones at -2.32% and finally the S&P 500 at -1.97%.
The move was also felt by the volatility index VIX, which rose above 20.50% intraday and finally eased towards 19.70%.
However, the trend is expected to turn, as futures are turning green due to the hopeful Sino-American trade talks at the end of the month. To ease tensions, China Vice Premier Liu He, after a phone call with US Treasury Secretary Steven Mnuchin on Friday, is expected to visit the US for talks prior to the Xi-Trump meeting on 30 November in Argentina. In the case of a positive deal, we could see a global rally.
Disclaimer: While every effort has been made to ensure that the datat quoted and used for the research behind this document is reliable, there is no guarantee that it is correct, and Swissquote Bank and its subsidiaries can accept no liability whatsoever in respect of any errors or omissions, or regarding the accuracy, completeness or reliability of the information contained herein. This document does not constitute a recommendation o sell and/or buy any financial products and is not to be considered as a solicitation and/or an offer to enter into any transaction. This document is a piece of economic research and is not intended to constitute investment advice, nor to solicit dealing in securities or in any other kind of investment.
Although every investment involves some degree of risk, the risk of loss trading off-exchange forex contracts can be substantial. Therefore if you are considering trading in this market, you should be aware of the risks associated with this product so you can make informed decisions prior to investing. The material presented here in not to be construed as trading advice or strategy. Swissquote Bank makes a strong effort to use reliable, expansive information, but we make no representation that it is accurate or complete. In addition, we have no obligation to notify you when opinions or data in this material change. Any prices stated in this report are for information purposes only and do not represent valuations for individual securities or other instruments."
By Vincent Mivelaz