5 reasons behind the strong sale of US indices today

DOW today was swept by nearly 800 points, S & P500 and NASDAQ with nearly 85 and 240 respectively. Although the moves here are not as dramatic as the FX market and especially the Pounds, the indices and stocks are notorious. Here are the five reasons - catalysts for today's "dramas":

China

Markets at the outset were raised after yesterday's US-China ceasefire signals, and Beijing announced new measures against the theft of intellectual property, but that was not enough. One major driver of sell-offs today is Lighthizer, who was selected as the lead negotiator.

Williams' comments

The sale was boosted today by the comments of New York Fed Chairman John Williams. He encouraged the idea of ​​gradually raising interest rates next year. He also stressed his enthusiasm for the US economy, which is still strong. This was an "obvious" factor for the current Fed course.

Brexit

Theresa May and the government today struck a blow after a vote on the government's proposal to extend negotiations on the Brexit deal. Parliament rejected it in both votes. The debates continue and the vote will be on 11.12. This symbolic and important loss will cause the government to publish the consensus reports on the legal aspects of the framework agreement. A symbolic loss is because it is taken as a sign that the 11th vote is likely to be a failure for the government and May.

Bonds

The bond market boils. The strong rally in them ended, as we see today a strong decline of 3.14%.

This is a strong sign, and here we see equalization with the 2-year bonds and their yield, which fell by 2.79%. The yield curve begins to equalize as 2 and 5-year bonds are now offset by 2 and 10-year bonds with 9 basis points.

The question is why we have such a great deal on bonds. One answer is that turning short-term bonds turns into an event that is itself a sign of events that can cause fears of recession. Others worry that this is caused by tensions over Fed's trade relations and policies.

Automobile tariffs

There were no news from last week to confirm tariffs themselves, but there are rumors that new rates for automotive business will be imposed as early as this week. Kudlow, in his last statement, has expressed positive attitudes to tariffs, but in general, it was taken as an incomprehensible signal from the markets because, initially, the Trump Administration said they were sure. If we are to look for a fear that has not been fully manifested today, these are the tariffs. And this is something that can lead to strong falls. There is a meeting between representatives of car manufacturers from Germany and the White House today.

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