Gold strikes the new record and that stocks on shares fall while Wall Street is concerned about the increase in price prices of Trump
The term contracts on S&P 500 are down -0.51% this morning and the term contracts on the NASDAQ 100 are even more down, -066%. Dow Jones Future fell by -0.37%. The American markets have experienced a three-day weekend, so it is difficult to say exactly why investors seem so tight.
The top of the list of usual suspects is, of course, “uncertainty”. A court of appeal threw the price plan of President Trump last week, which the markets had finally played after months of uncertainty. More uncertainty is ahead as the United States Supreme Court takes the case.
And then there is Trump’s war against the Fed, in which his allies asked the Ministry of Justice to lead criminal probes on President Jerome Powell and Governor Lisa Cook. Investors are not enthusiastic about the idea of an American federal reserve motivated by a political engine because it leads to more – you have guessed it.
George Saravelos, from Deutsche Bank, says that investors have not yet changed, however: “What loss of independence is the market price? Surprisingly little, from our point of view,” he told customers this morning. “Long-term inflation expectations are the definitional metric of an independent central bank and they have barely evolved in recent weeks. Or maybe the market thinks that even if President Trump increases its influence on the Fed, it remains determined to maintain low inflation, even at the cost of lower growth … To summarize, the market is currently no long-term price in the Fed reaction function. “. »»
Perhaps investors examine the soft data, which indicates that prices focused on prices are finally transmitted to consumers, and that if consumption expenses have been robust recently, they may lack gas.
“80% of companies have declared to increase cost cost increases to consumers,” Goldman Sachs told his customers this morning. Bank’s research was based on Dallas Fed surveys with companies. “Among these respondents, 21% said they had already crossed the total cost of tariffs to customers,” wrote Jessica Rindels and her team.
The consumer is not in good shape to deal with these price increases, according to the Samuel tombs of the Pantheon macroeconomics.
“Real consumption increased by 0.3% in July, the most since March, but the trend still seems much lower than last year. The growth rate announted in the three months until July, compared to the previous three months, was only 1.0%, well below the average of 3.1% of last year,” he told customers in a note that we see by Fortune.
Discretionary retail sales seem to have increased in August, says Tombs, which would normally be positive news – but that consumer tax growth has dropped to zero.
“The foundations for a renewal of care for actual household expenditure is lacking. Real income after tax increased by only 0.2% on an annualized basis of three months in July, constrained by the price increase, the slowdown in employment growth and a decrease in dividend income,” he wrote.
It is not clear that these macro concerns are the source of investors’ pessimism this morning. But it is clear that investors are pessimistic: the price of gold – generally considered to be a safe refuge for nervous traders – another record today. The Comex continuous contract for gold was $ 3,551.80, up 1% over the day.
Here is a snapshot of markets in the world this morning:
- Future S&P 500 dropped by 0.51% this morning. The index decreased by 0.64% during its last negotiation session.
- Stoxx Europe 600 fell 0.65% at the start of negotiations.
- The FTSE 100 of the United Kingdom fell 0.32% at the start of negotiations.
- Nikkei 225 from Japan increased by 0.29%.
- CSI 300 from China dropped by 0.74%.
- South Korea Kospi increased by 0.94%.
- Nifty 50 of India was flat before the end of the session.
- Bitcoin increased to $ 110.6,000.
