The AEX appears to open today at 929 points, and therefore two points lower than Tuesday’s final race. Since the bottom of the beginning of April, the AEX has risen by more than 16%, but there is a lot of resistance on the current race. Can the AEX break through that resistance and start a new bull market?
New bull market for the AEX
Before the start of a new bull market, the AEX must climb past the level of 950 points. The previous all-time high was around that course. With all the uncertainty that is currently above the market, it is almost dangerous to say that a new bull market has started.
Last month the world was still very concerned about a possible recession. Now that fear would have disappeared into the background again, and people are suddenly very optimistic about the world.
However, the reality is that there is only a provisional agreement between China and the United States. It is an agreement for 90 days, and a real trading peace has yet to follow.
In addition, we should not forget that there is still the highest worldwide levies for several decades. That is usually not the best breeding ground for a sustainable bull market.
The gold rate lives up
What is striking today is that the gold price can also record green figures again. That is usually the case if investors want something of safety in their portfolio. According to Trading Economics, gold is currently mainly supported by geopolitical unrest.
“Messages that Israel plans an attack on Iranian nuclear installations fueled the concerns that the conflict in the Middle East could escalate, since such an attack might lead to retaliation actions by Iran.
The geopolitical tensions increased further after President Trump announced that Russia and Ukraine would immediately start a ceasefire, but at the same time he seemed to indicate that he would withdraw as a mediator in the three-year conflict.
In the meantime, the US dollar remained weak after the cautious economic prospects of the Federal Reserve and a reduction in American credit by Moody’s because of the rising debt.
Investor confidence also gained a blow because of persistent uncertainty about the trade rate policy and an upcoming crucial vote on Trumps important tax reforms. A weaker dollar has made gold more affordable for international buyers, which stimulated demand, ”says Trading Economics with an explanation for the rise in gold and the likely price fall in the AEX.
Source: https://newsbit.nl/nieuwe-daling-voor-de-aex-weerstand-op-930-punten-is-groot/
