
The AEX price today opens lower at 930 points, while the rest of the European stock markets are also under pressure. Furthermore, Asia opened lower and we see the American futures fall. It seems that today we will be confronted with a red day at the fair.
Red day at the fair
How is it possible that stock prices will fall after the United States and China came to a new trade agreement in China?
- First, stock prices never move up in a straight line. It is quite possible that the market has to catch your breath after the strong period of recent weeks.
- Secondly, we saw that investors jumped en masse on American government bonds yesterday, after the inflation figures were not so bad. Apparently trust in government bonds has not completely disappeared, and they have bled enough in the past period.
- Thirdly, despite the deal between China and the US, there has been the highest levies for several decades. It is quite possible that the economy will still have difficulty with that. Companies must find their way in the new trade climate.
So there are enough possible reasons for the weaker opening of the AEX. Yet there does not seem to be a new trend immediately.
The American economy is strong
Despite the red day on the stock exchange, the American economy remains strong, unemployment is historically low, and it seems that all geopolitical superpowers are preparing to spend a lot of money in the coming years.
China and the United States are of course involved in a kind of AI-weapon race. While Germany also pushes all budget discipline aside to get its defense device in order.
In addition, Europe will also want to participate in the AI race, so that the money on our continent must also roll. In that respect, a scenario remains possible in which the AEX will eventually move towards a new bull market.
Source: https://newsbit.nl/aex-koers-onder-druk-ondanks-handelsdeal-vs-en-china/