Clearly, the market remains in the bottoming process following Tuesday’s 3% drop on the back of skepticism of the G20 Trump/Xi meeting, Brexit uncertainty, a near inversion of the yield curve, and a lack of clarity on Fed policy heading into the December 19 FOMC meeting. If those factors weren’t enough to keep traders on edge, just as futures were attempting a bounce on Wednesday, the CFO of Huawei Technologies was arrested in Canada, and is awaiting extradition to the U.S. in connection with an investigation into possible violations of the Iran sanctions. The selling was so pronounced, the CME temporarily paused trading. It seems that only clarity on Fed policy and a stabilization in the 2-10-year U.S. Treasury Yield Curve will take pressure off the equity market, and that clarity could come from the economic data over the coming few days.
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