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Right's Asset Management

Our analytical news

31 May 2019

Now in the market we can see an escape from risk: shares are being sold - bonds are being bought

Now in the market we can see an escape from risk: shares are being sold - bonds are being bought. The cost of long-term US government bonds jumped 2.2% in the last week. The yield curve continues to be inverted, that increases the possibility of a recession in the United States. Players also allow for the 83 percent probability of a FRS ratelowering by the end of 2019 (diagram ). It means about the expectation of a difficult, in economic terms, second half of the year for the United States. Already, industry giants like General Electric, Ford are announcing large cuts in workers. Unemployment dynamics is one of the key indicators for the FRS. Technically, the S & P500 index is trading below the level of 2800. We wrote earlier that if May closes below this mark, a trend reversal signal will be received. Recall that China is now taking anti-measures against the United States: the refusal of FedEX services, stimulation of the internal mining industry, lawsuits against Boeing and Apple. A trade agreement is clearly not under consideration.

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