Stocks Fall Further as Fuel is Added to Impeachment Drive in the Weekly Market Update by Valeo Financial Advisors (September 28, 2019)
September 28, 2019    Disclosures    POSTED IN  Uncategorized

The impeachment push builds as Democrats criticize Trump over a call with Ukrainian President, Volodymyr Zelensky.  This comes after reports that Trump broke the law by requesting Ukraine investigate Biden and his son.  More directly, the whistle blower complaint alleges efforts to coerce Ukraine and conceal evidence.  The Supreme Court in the United Kingdom unanimously decided Boris Johnson’s attempt to suspend Parliament was un-lawful and the legal body will meet without delay – seen as a negative against the Prime Minister’s willingness to leave the Bloc without a deal on Oct. 31.  The trade saga rolls on with a planned meeting in two weeks between the U.S. and China while the latter granted waivers for the purchase of some U.S. agricultural products; however, it was reported that the Trump administration is considering ways to limit domestic investor flows to China.

Trade had not been the only headwind to investors during the week.  Markets had to navigate both the political drama and fresh economic data, particularly a final GDP measurement, ultimately leading to equities declining for a second week in a row.  Friday sparked a big reversal to a mostly flat few days of trading following the announcement of potential capital flow curbing by the administration.  Tech stocks were hit hardest while financials outperformed.  Crude also went lower weighing on the broader commodity index based on unexpected U.S. inventory growth.  Uncertainty also ripped through the bond markets as investors sought some safety from falling stocks.  The 10-year Treasury note fell to 1.69% Friday after closing at 1.75% the week prior.

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