5 September 2017 (8:44 AM IST)
4 September 2017 (11:14 PM EDT)
European stock markets traded in a choppy manner yesterday, opening low and then climbing up to recover almost all losses. Today also, European stock futures are trading only mildly lower although U.S. stock futures are showing bigger losses, all thanks to the “North Korea & its war threats” drama being played for the benefit of current U.S. presidency. The pattern is now quite familiar; create a boogyman, fight him, win over him, win a round of applause locally and show your strength globally. That’s what Bush did in Afghanistan & Iraq, Obama tried to do with ISIS (and failed) and now Trump is doing with North Korea.
Frankly, all the sufferings in global markets in the last two decades have been a result of American follies, whether financial or political. Right from dot com bubble burst, to financial crisis of 2008 and now internal fighting over Trump’s presidency since the result of 2016 presidential election. (Maybe somebody should ban U.S. markets form trading for a few decades and let global markets trade peacefully 🙂 )
Traders and investors are sensing the game now so Asian markets are trading mixed, with China and Hong Kind markets trading positive, ignoring negative U.S. stock futures. SGX Nifty is also positive. European stock futures are only marginally down. Only U.S. stock futures are highly negative but global markets have been ditched by such low numbers previously, when Dow Jones futures were down by almost -200 points and then the index rallied after the opening bail and ended positive.
So, this time, global markets are not paying much attention to U.S. stock futures and are trading on mostly local cues. Markets will remain range bound and choppy in shaky global sentiment.
Watch how your local index trades and follow the pattern.
Good luck, enjoy the session!