14 November 2016 (6.23 AM EST)
European markets and U.S. stock future have fallen after the credit rating agency Moody’s predicts lower economic growth for global economy and says that around 26% of global sovereign ratings have a negative outlook at this time, probably till 2018.
after this news, European markets lost most of their earlier gains and U.S stock futures dropped heavily. S&P 500 and Nasdaq futures have already turned negative at the time of writing.
Emerging markets are going to be affected badly by this prediction and SGX Nifty (futures of Indian index Nifty) have fallen by more than 150 points at this time.
U.S. and European stock futures are rallying, indicating a positive start to the week.
Dow Jones futures are more than 100 points higher before the open of European markets. Futures of DAX, CAC 40 and FTSE 100 are also trading with big gains and are expected to open with a jump.
Not only stocks but the Dollar index and bond yields are also rallying, which is contradictory. If dollar and bond yields rally, that means markets are factoring in a rate hike from the Fed next month. In that case stocks should have been down.But that is not happening, so, instead of trying to find rhyme and reasons (why markets crashed at the possibility of a Trump win and why markets are rallying after his win) just follow the trend and trade with it.
Good luck, enjoy the session!