The China bazooka is changing the logic of the stock markets – winners and losers are becoming increasingly clear: these are stocks from sectors that should benefit from the stimulus in China – i.e. ahead of classic sectors such as industry, etc. This is why the European stock markets are strong today , especially the Dax – this is supported by the fact that the markets are also betting on an interest rate cut by the ECB in October. A lot of capital is now likely to flow into China – and out of Japan, where the next prime minister is expected to be a monetary policy hawk (Nikkei future crashes after election). In the Middle East there is now a war between Israel and Hezbollah after an Israeli attack on Hezbollah’s command center and the declared attempt to kill its boss Nasrallah.
Notes from video:
1. Market whispers Part 2 can be seen here:
2. Fugmann’s Trading Week: The stock market letter
Read and write comments, click here
