On Tuesday, the most important US indices can initially win. The domestic pressure on Trump grows.
The Dow Jones increased 2.27 percent to 38,827.10 points for the starting bell.
The Nasdaq Composite initially increased by 3.7 percent to 16,181.04 points, while the market width S&P 500 was listed at 5,193.57 points (+2.59 percent).
However, the currently rather diffuse news situation for the customs issue in the USA could lead to slipping the market at any time if new bad news should make the round.
“Probability of tactical relaxation has increased”
“The likelihood of tactical recovery has increased after the strong correction, especially if there are more harmless trade headlines, deadline extensions or signs of negotiations,” says analyst Tony Lee from JPMorgan, describing the tense situation on the US exchanges.
The news situation for the recovering trade war, which US President Donald Trump started, provides Lichtblicke, but also other neck strokes for the market. Trump threatened instead of currently 34 percent import tariffs with an additional 50 percent if Beijing should not move away from the announced retaliation measures. On the other hand, the willingness to negotiate seems great. The White House reports over 50 states that wanted to conclude trade agreements with the USA. Finance Minister Scott Besseter emphasizes the will of Japan to understand.
Fear-Barometer Vix at the highest level since August
How high the uncertainty of the markets is also shows a look at the VIX index at the chicago appointment exchange. This is considered a indicator of the “fear” of investors and currently notes as high as in August last year.
Domestic pressure on Trump is growing
In addition, the domestic pressure on Trump grows. Reports suggest that important confidants, party friends and chairman of the board of large companies oppose Trump’s customs policy and at least demand a shift in tariffs. Bill Ackman, founder of the hedge-fund company Pershing Square and activist investor, has spoken out for a shift in tariffs. The CEO of Bank JPmorgan, Jamie Dimon, also commented.
Redaktion finanzen.net / Dow Jones Newswires