Stock market review December 18, 2019
What is with the market?
Nasdaq 100 🇺🇸
Having conquered the next historical maximum almost against the background of just the abstract Twitter trump, the index is growing at an implacable pace.
Considering that growth is not supported by anything fundamental, first phase, although agreed, but it only obliges China to purchase more agricultural products from the United States. The current picture of the US stock market resembles a crazy rally, behind which, apparently, is an artificial price pump.
The logic is clear: 2019 showed excellent growth in US indices, while the upward momentum began at the very beginning of the year. Therefore, behind the growth are large investors with big money.
Sooner or later, investors will take profits. A good downward correction will occur in any case for all indices of the US market. The only question is when will this happen? Option one: last week of 2019, option 2: at the beginning of 2020.
Do not forget about the US presidential election in 2020. It will be difficult for Trump to win again, and who knows, maybe we will again see the stock market that you can buy and hold without fear of treacherous tritters and inciting trade wars.
Nikkei 225 🇯🇵
Steady growth over the past four months has brought the price of the index to the area of local maximums 2017 and 2018 is ready.
From the level of 24180, we have already twice observed an intensive bounce of the price down: at the beginning of 2018 and at the end of 2018. The 3rd test of an important resistance area may be crucial.
The further dynamics of development in this market depends on the exposure of the level. Unfortunately, the Central Bank’s rates have nowhere to be reduced, which may prevent the breakdown of the mark.
The growth rate of the global economy and GDP, likewise, does not bode well, while the trade war is becoming mainstream, adversely affecting global markets.
The probability of a fall this year is relatively low, but at the beginning of 2020, the transition of the market to the phase of a downward correction is very likely.
FTSE 100 🇬🇧
Past parliamentary elections in Great Britain did not pass without a trace for the British stock index FTSE100.
The price of the pound has noticeably strengthened over the past two weeks, and some individual companies included in the index have pleased investors with growth of more than 10%.
The cost of the instrument is approaching the maximum of 2019. There is no reason for a sharp fall in prices, therefore, we expect further strengthening of the index value and a test of this maximum, since this area acts as a significant resistance to the market.