Market optimism in the United States is supported by the positive attitudes about the trade deal between Washington and Beijing, which were valid until today, the better results of the companies for the last quarter, as well as the ongoing stimulus policy by the Federal Reserve. This was said by Dragomir Velikov - Chief Investment Officer of Compass Invest JSC, in the show "In development" hosted by Veronika Denizova.

Velikov also commented on the main factors that led to the decrease in the volatility index VIX to a 2-year low. According to him, the calmness of investors is due to the fact that they rely on central banks to react in case of shocks.

“However, the rally in the markets will certainly be stopped” the guest commented. According to him, a change in central bank policies is among the biggest threats to Wall Street traders, as well as the escalation of the trade war between Washington and Beijing, which could affect consumption as it is one of the main drivers of economic growth in the USA.

“It is surprising that the protests in Hong Kong are still not affecting the markets” Velikov said. He added that Trump's support for the protesters is likely to further complicate a trade truce between the United States and China.

The guest also commented on the movements of European stock exchanges. According to him, it is likely that next year the stock exchanges of the Old Continent will offer a positive surprise, in particular the shares of companies in the automobile and banking sectors.

The whole interview you can see the HERE.