US stocks tumble, while China gains – What's next?
Important news for the day
- Thu, 25th, 09:30 CET CH SNB Interest rate decision.
- Thu, 25th, 14:30 CET US Gross domestic product.
Chinese stocks
Despite the negative sentiment in US markets, the positive trend in China seems to continue. The HangSeng tech index from Hong Kong pushes to the upside and also the Chinese A 50 index keeps moving higher. During the short Climate Summit China recently presented that the country will also reduce carbon emissions by 7- 10% until 2035, a move which had not been previously expected. The United states did not take part in the Summit. Especially Chinese car manufacturers like BYD and Xiaomi continue to push prices to the upside amid low valuations as compared to the Western World.
Market talk
US equities continue to remain shaky and the S&P 500 as well as the NAsdaq index both look vulnerable for potential further losses. The DAX remains positive and might push higher if the current support zone does not break. German car manufacturers Porsche and VW also started to rise after their recent negative headlines. AS the Dollar continues to remain strong the GBPUSD and NZDUSD currency pairs both push lower. The crypto market seems to follow the negative momentum of US equities as most tokens proceed lower. The positive trend in Gold and Silver seems to be unstoppable.
Tendencies in the markets
- Equities correcting, USD stronger, BTC sideways, ETH weaker, oil positive, Silver positive, Gold positive, JPY weaker.
Author
Frank Walbaum
FX Strategies.Asia
Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.
