Archives of “June 27, 2019” day

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Reuters – FAA has identified a new risk on the Boeing 737 MAX

  
  Analysis
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A report on what the U.S. Federal Aviation Administration says is a new risk that Boeing must address

  • discovered during a simulator test last week
  • not yet clear if the issue can be addressed with a software upgrade or will require a hardware fix
Reuters citing ‘sources with knowledge of the matter’.
  • Means Boeing will not conduct a certification test flight until July 8 in a best-case scenario, the sources said … one source cautioned
A report on what the U.S. Federal Aviation Administration says is a new risk that Boeing must address 

G20 starts today, US – China meeting tomorrow. Deal seen as unlikely … but

  
Analysis, Economy
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Perhaps there is scope for some sort of US – China agreement stemming from the Trump – Xi meeting at the G20 summit.

‘Agree to keep talking’ seems the most likely outcome IMO, but we’ll soon find out. Any increase in hostility would be a negative but a dinner together is probably not going to lead to this, at least right away.
When do we get a deal? If we do.?
An interesting overnight note from ING says it’ll not be until towards the end of this year:
both sides want a deal
  • China can hurt the US economically but it knows that the US can hurt China even more. 
  • President Trump needs a deal to show the American people that he delivers on his promises to get better terms of trade for the US. He knows that this is best done without the US economy having to suffer from Chinese retaliation for an extended period of time.
We expect a deal to be struck in the last quarter of this year
  • it is likely that China as well as the US are prepared to make concessions in the end
  • After all, this is what’s happened in the renegotiation of Nafta
  • To strike a deal, Trump had to accept that Mexico and Canada would not agree to all of his original demands
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On that 
  • Trump had to accept that Mexico and Canada would not agree to all of his original demands
You’d say the same of China, but so far they’ve held firm. 
Added – G20 start 28th.

Mixed day as earlier days erode. Nasdaq close higher. S&P and Dow end day lower.

  
Analysis, US Market

All major indices well off the highs

The US major indices are ending the day with mixed results. The NASDAQ index ended higher while the S&P and down ended with modest declines.   However, all three indices closed well off session highs and in fact, are clsoing just off the session lows
Below are the high, low change levels and the close change for the major indices in North America and Europe.
All major indices well off the highsThe chart below shows the % changes for the high, low and close.
The % changes for the day
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