That financial markets aren’t reacting to the political chaos in Washington right now doesn’t mean investors can rest easy.
Attack on the Capitol Those emerging market vibes were starkly illustrated by the events of last week. President Donald Trump is accused of inciting a violent mob of his supporters to attack the Capitol on Jan. 6 in an unsuccessful-but-deadly bid to halt the formal certification of his opponent’s electoral victory last November.
Stocks ended a choppy session near unchanged Wednesday as the House debated impeachment, with the Dow falling 8 points, or less than 0.1%, and the S&P 500 SPX, +0.23% rising 0.2% — not far off all-time highs. Analysts said investors are more worried about slowing efforts to pass additional relief measures than they are about the outcome of the impeachment process itself.Fever break or warning? Philip Marey, senior U.S.
Correlations GeoQuant’s Rosenberg agreed that investors have yet to be rattled by a polarized U.S. political backdrop. So far, the status of U.S. markets as a haven during periods of market or economic uncertainty appears largely undimmed, analysts said. That status reflects the role of the U.S. as the world’s largest economy and the deep liquidity of the U.S. Treasury market, analysts said.
Cracks? But the U.S. dollar might also be where cracks could emerge. Rosenberg said the dollar’s performance, as measured by the ICE U.S. Dollar Index DXY, +0.09% and, in particular, the euro/dollar EURUSD, -0.10% pair, has had a significantly negative correlation to GeoQuant’s measure of U.S. political risk since January 2020 .
Dear MarketWatch... stop your nonsense negativity and get these writers out of here.
Speculation!!
The prospect of economic stimulus in the US has attracted fresh money into commodities markets.Precious metals, meanwhile, have suffered net outflows this year as investors flee safe haven assets.
Please just shut up with bearish sentiments... you guys post these all the time. Give up
So?