Equity markets came under pressure in the US session when it was announced that the Democrats will indeed begin an impeachment inquiry on Donald Trump. This shouldn’t come as a major surprise, given the famous equity-touter in chief has provided the ‘Trump-pump’ to support equity markets more times than one can remember.
Still, it’s the beginning of a long and hard struggle for the Democrats as Republicans run the senate; with 2/3rd majority required to vote to impeach Trump, it looks far from uncertain and much closer to unlikely. Regardless, it could certainly hamper his efforts to focus on his agenda and successfully navigate his way through the trade war that he started which provide another headwind for equities along with the fear of a global recession.
Whilst its far from certain Trump will actually be impeached, it was enough to wobble US equities. And, given the monthly reversal candles on the S&P500, we look at the potential trigger level to mark a larger decline.
Whilst FedEx Sounds The Alarm For Global Trade, Can UBS Weather The Storm? | FDX, UPS
[Video] Bears Regain Control Over Netflix
Samsung’s Breakaway Gap – The Beginning Of Something Larger?
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.