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All Eyes Are On The Upcoming NATO Summit.

Summary

NATO summit meetings were once ritualistic events, with the member nations assembling to proclaim that the alliance had never been stronger and pledging to work together on the security issues.

The planned meeting with Russian President Putin after the NATO summit also added some fuel on the member of nations.

The non-NATO leader most feared to have a negative impact in Eastern Europe.

The first half of 2018 has been already over. The 3rd quarter has been already rolled out. US equity market is trying to come out from the prolonged tumble since the last month. Ist week of July has shown some positive flow to the Investors as Equities got a boost from a positive job report in the last week. Federal Reserve also showed that consumer borrowing picked up is up 7.6% which is the fastest pace of credit growth since November and underlines a series of strong data that have underpinned a recent multi-day rally for stocks. The report helped divert attention away from the ongoing trade war between the U.S. and its biggest partners.Since few months US protectionist stance has been seen in various international summits such as North Korea summit, G7 summit and mostly highlighted prolonged US-China talk which directly throws an impact on the Global economy.Following the recent trend, investors are also keeping eye on upcoming NATO summit which will be held on 11th July in Brussels.

What are NATO and its effect:NATO summit meetings were once ritualistic events, with the member nations assembling to proclaim that the alliance had never been stronger and pledging to work together on the security issues of the day. In the past, Europe did not doubt that U.S. interests and values were fundamentally aligned with theirs. But in the current scenario, President Trump is more aggressive, less willing to be moderated or guided by his senior staff and cabinet secretaries, more confident, especially after his meeting with the North Korean leader, Kim Jong-un, in his own diplomatic stance. The NATO allies are concern about his ability for off-the-cuff pronouncements, like calling for abandoning sanctions against Russia or suspending NATO military exercises. The planned meeting with Russian President Putin after the NATO summit also added some fuel on the member of nations.So expect pushback on Trump’s declarations that other members pay their fair share with finger-pointing that Trump is cosying up to the non-NATO leader most feared to have a negative impact in Eastern Europe, looking ahead. Which may also give an impact to the largest Industrial sector, Aerospace and defence sector.

No one really knows how Trump will act during the summit. But the ongoing relationship with President Trump will keep the other member of nations on the edge which may draw a trade future with NATO members.The fact is that Wall Street is heading into the earnings season which is a catalyst for stocks. Major Financial stocks are going to report this week and more to come in upcoming weeks. Investors are expecting a strong and maybe even stronger than the previous one. But the truth is anything from the left side become a headwind for the Global market as well as US Equity market. The market can surprise you with what it’s focused on. So stay updated with the market sentiments & en-cash it before it gets off the market.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.