Trump's possible impeachment does not seem to bother investors



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The Dow Industrials, S & P 500 and Nasdaq indices were all in negative territory during the first hour of trading on Wednesday, as markets began to absorb the risk of President Trump's removal. The VIX index, or volatility index, was higher during the first hour but dropped during the remainder of the session. Gold had a pattern quite similar to that of the VIX, rising slightly early in the session but falling sharply in two hours.

However, it seems (unsurprisingly) that the stock markets are more interested in a trade deal with China than in Trump's political problems, with the Dow and S 500 indexes up 0.6% and those of Nasdaq, in up 1% Wednesday. Even the release of a potentially damaging transcription between Trump and the President of Ukraine (or a large part of it) did not derail the markets.

Yet, one day does not make a trend. According to the updated supplementary information (there are reports Wednesday night Whether the whistleblower report can be made public as early as Thursday, or at least largely), the indictment process could have a life of its own with unknown impacts on Trump and the markets.

Another comment from Trump on the Chinese vaporware trade?

The main reason why the markets have increased is probably a brief comment from Trump in the morning on the conclusion of an agreement with China. By a Reuters report Trump said an agreement "could come sooner than people think, the Chinese were making big agricultural purchases, including beef and pork, and they really want an agreement."

However, it is only the day before in his speech at the United Nations General Assembly that Trump lambasted the Chinese. He saidChina has not only refused to adopt the promised reforms, but has also adopted an economic model based on massive market barriers, heavy state subsidies, currency manipulation, product dumping, forced transfer technology and the theft of intellectual property. These types of declarations do not facilitate the conclusion of a comprehensive agreement by both parties.

The volatility index fell more than 6%

The VIX or volatility index fell from 17.05 to 15.96, 1.09 points or 6.4% on Wednesday. If the markets were worried that Trump would be attacked or that it would affect the economy, the VIX should have gone higher. It had risen over the last week but with the publication of the transcription of the phone call between Trump and the President of Ukraine, it would not have been surprising that it was passed higher.

Gold dropped by more than 1%

Gold rushes when there is a lot of uncertainty and the removal of Trump creates a lot of uncertainty. However, gold fell $ 22 or 1.4% to $ 1,511 on Wednesday. As gold has risen sharply over the past four months, Wednesday's decision was just a profit-making.

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The Dow Industrials, S & P 500 and Nasdaq indices were all in negative territory during the first hour of trading on Wednesday, as markets began to absorb President Trump's dismissal potential. The VIX index, or volatility index, was higher during the first hour but dropped during the remainder of the session. Gold had a pattern quite similar to that of the VIX, rising slightly early in the session but falling sharply in two hours.

However, it seems (unsurprisingly) that the stock markets are more interested in a trade deal with China than in Trump's political problems, with the Dow and S & P 500 index up 0.6% and those of Nasdaq , up 1% on Wednesday. Even the publication of a potentially damaging transcript between Trump and the President of Ukraine (or much of it) has not derailed the markets.

Yet, one day does not make a trend. Depending on the additional information revealed (the report on the whistleblowers could be made public as early as Thursday evening, or at least largely), the impeachment process could take a life without unknown consequences for Trump and the markets.

Another comment from Trump on the Chinese vaporware trade?

The main reason why the markets have increased is probably a brief comment from Trump in the morning on the conclusion of an agreement with China. According to a report by Reuters Trump, an agreement "could come earlier than expected, the Chinese were making big agricultural purchases, including beef and pork, and they very seriously wanted an agreement."

However, it is only the day before in his speech at the United Nations General Assembly that Trump lambasted the Chinese. "Not only has China refused to adopt the promised reforms, but it has adopted an economic model based on massive market barriers, heavy state subsidies, currency manipulation, dumping of products, forced technology transfers and the theft of intellectual property as well as trade secrets. " a large scale. "These types of declarations do not facilitate the conclusion of a comprehensive agreement by both parties.

The volatility index fell more than 6%

The VIX or volatility index fell from 17.05 to 15.96, 1.09 points or 6.4% on Wednesday. If the markets were worried that Trump would be attacked or that it would affect the economy, the VIX should have gone higher. It had risen over the last week but with the publication of the transcription of the phone call between Trump and the President of Ukraine, it would not have been surprising that it was passed higher.

Gold dropped by more than 1%

Gold rushes when there is a lot of uncertainty and the removal of Trump creates a lot of uncertainty. However, gold fell $ 22 or 1.4% to $ 1,511 on Wednesday. As gold has risen sharply over the past four months, Wednesday's decision was just a profit-making.