China’s Biggest Bull Trend in 3 Years Makes Dow Jones Comeback Imminent

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Mainland China markets may have accelerated the recovery of Wall Street this week. | Image:. STR / AFP

  • A-shares market of China have just seen most uptrend in three years
  • As major banks are predicting further cuts in interest rates in the United States 2020, it is expected that investor appetite to rise
  • the Dow Jones is already showing signs of following recovery rally on Monday

    -actions to China market -. . domestic stocks traded on the Shanghai and Shenzhen - had only mostly uptrend in three years. The sharp recovery of the Chinese stock market increases the likelihood of a strong industrial average Dow Jones recovery in the short term.

    The rebound of the corresponding share market led the SSE Composite Index to rise by 3.15% on the day, recovering almost all the losses from last week

    analyst Jiang Xin says :.

    stronger experience in the Chinese market shares to the upward trend since 2015 despite the global economic downturn and the outbreak of coronavirus, many stocks reached their ATH shares. Analysts believe that fiscal policy to stimulate lit the bull market. Advertising

    Dow Jones severely oversold

    According to financial analyst Josh Jordan, the stock market of the United States officially entered a correction in the middle of an outbreak of coronavirus world last week.

    Investors started to panic selling frantically hand both the risk and active risk aversion, as concerns about an outbreak of coronavirus break out in the US They intensified.

    Jordan said in a tweet the following:

    Today marks the point of falling biggest single day for the Dow Jones in history to 1,195 points. That said, it is far from being the largest percentage drop in one day. And the stock market in the US is now officially in a correction in the middle of a crisis develops. What crazy week.

    Most of the selling pressure on the US market Dow and broader stock came from institutions. As previously reported, the Dow Jones saw "record levels of selling" driven primarily by institutional algorithms.

    introducing various stimulus packages of the Federal Reserve, as a cut in benchmark interest rates could increase investor appetite, especially after such a major setback. Advertising

    In China, investors are reacting to increasing government in fiscal spending, which is relieving pressure on the local stock market. The effectiveness of additional stimulus launched by the government in boosting equity markets is quite simple, according to Li Changmin high investor profile.

    With the Fed hinting at a degree lower interest rate in the third quarter of 2020, major banks expected the Fed to cut less 100 basis points at the end of the year.

    a rate of almost zero federal funds could be the catalyst investors are trying to point to a recovery in the Dow Jones. Dow Jones Industrial Average (DJIA) 5.1% on day recovered. | Graphic: Yahoo Finance

    Rebound of the market at the opening

    The Dow Jones, as the markets of China, Korea South and Japan recovered more than 5% on Monday recovered after heavy liquidation.

    immediate obstacle to the Dow is concern about a possible outbreak of coronavirus in the United States.

    A person in the US coronavirus was diagnosed with no clear connection to a patient or COVID-19 travel to China.

    If US investors increasingly see certainty about the outbreak of coronavirus in the coming days, the attitude of support from the Federal Reserve and central banks in Europe and Asia could provide a catalyst for a recovery in the market wider.

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