Updentaned Trump-Zelenskyy Peace Talks, in addition to positive inflation data, create an unstable Friday

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  • Actions were promoted on Friday morning in the field of PCE inflation in line.
  • The Trump-Zelenskyy peace meeting goes after the vice president calls the Ukrainian president “disrespect.”
  • Surveys show that investors are extremely stubborn at the end of February.
  • DO JONES Index trades below the 100-day movable average.

The last day of February was extremely unstable, because traders tried to digest many headlines as the session progressed.

The main stock indexes developed initially on Friday after the favorite inflation report of the Federal Reserve (FED) was consistent with expectations for the period of January. Earlier there were fears that the report on expenses for personal consumption (PCE) would show an boost in inflation, as in December a report.

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However, the US actions (USA) traded lower after a failed meeting at noon in an oval office between US President Donald Trump and Ukrainian president Volodymyr Zelenskyy. Two heads of states tried to negotiate the possible end of the war between Ukraine and Russia, but now a contract is appearing. The actions of the main indexes were recorded by recent weekly minima in the middle of the session before recovery in the delayed afternoon.

Zelenskyy challenged Trump and vice president of JD Vance to offer security guarantees that he thought was necessary, because in 2019 he had already signed a ceasefire agreement that Russian President Vladimir Putin broke with invasion of Ukraine in 2022. In response, Vance called Zelenskyy “disrespect” to negotiate before reporters. The meeting became more intense and strange from there, and Trump’s administration canceled the afternoon press conference.

In addition, a separate agreement for the granting of American access to Ukrainian mineral rights in exchange for military assistance was associated. Failed peace negotiations occur after voting against the UN (UN) resolution at the beginning of this week in order to condemn the Russian invasion, as well as the leader of the German Christian Democratic Union, which this week led in parliamentary elections, saying that he would go towards independence from the US.

Data on inflation in January improves, but the tariffs and release are terrifying the market

The PCE report from January, published before opening on Friday, showed that spinal inflation increases by 2.6% y / y, which was in line with consensus and much better than the December report, which was changed up to 2.9%.

Inflation was a sedate worry at the beginning of this year, because Trump’s administration doubles the tariff. Trump repeated that the tariffs would come into force on March 4. They include 25% tariff on the largest trading partners in the USA, Canada and Mexico, as well as an additional 10% on Chinese import, increasing the rate of the latter to 20%.

Analysts have noticed increased commercial flows because companies fill in wrestling before planned tariffs.

Tariffs add consternation from the American labor market as an adviser to Trump Elon Musk – known for his management Tesla (TSLA)Spacex and X.com, among other companies – uses his newly discovered government power to dismiss tens of thousands of federal employees, which can have a harmful impact on a wider private sector.

Initial unemployed claims this week increased to 242,000, much higher than 221 thousand. Expected by economists.

What’s more, activists called a general boycott on Friday, asking American consumers to stop all purchases as a protest against billionaires and immense corporations raising prices.

Bears, sentiment, penetrates the stock exchange

While the main US indicators are lower than the place where the year began, the symptoms of a lot of investors are waiting for an extended downward trend.

Nvidia (NVDA)The leading featherlight of the stock market rally in the last two years has sold on Thursday by 8.5% after reporting a solid quarter.

. Dow Jones Industrial Trains (DJIA) It is now always trading below the most critical 100-day straight movable average (SMA).

Popular Vanguard Information technology ETF (VGT) passed below the 200-day SMA this week, while Microsoft (MSFT) He replaced his hands near the price of a market disaster on August 5, 2024.

VGT Daily Mapher

The American Association of Individual Investors announced on Tuesday that his last weekly test of retail traders increased bear respondents from 40.5% last week to 60.6%. Bears Investors are those who expect the market to be lower in six months.

Bank of America Securities “February study Global Fund Manager (FMS) showed that 89% of fund managers with which interviews were conducted perceived the American stock market as” overstated “, the largest percentage since April 2001.

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