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On October 18, AFP reported that a source in the Ukrainian delegation revealed to the media that Ukrainian President Volodymyr Zelensky presented a map of potential targets in Russia to US President Donald Trump during their meeting in Washington, D.C., on Friday (October 17). The report quoted the source as saying, "The map shows pressure points in Russias defense and military economy that could be targeted to force Russia to end the war." As of press time, neither the White House nor Russia has responded to this report.1. All three major U.S. stock indices closed higher, with the Dow Jones Industrial Average up 0.52%, the S&P 500 up 0.53%, and the Nasdaq up 0.52%. American Express rose over 7%, and Apple rose nearly 2%, leading the Dow higher. The Wind US Tech Seven Index rose 0.86%, with Tesla up over 2% and Nvidia up 0.79%. Most Chinese concept stocks rose, with Futu Holdings up over 4% and Pony.ai down over 5%. For the week, the Dow Jones Industrial Average rose 1.56%, the S&P 500 rose 1.7%, and the Nasdaq rose 2.14%. 2. All three major European stock indices closed lower, with the German DAX down 1.61%, the French CAC 40 down 0.18%, and the UKs FTSE 100 down 0.86%. For the week, the German DAX fell 1.49%, the French CAC 40 rose 3.24%, and the UKs FTSE 100 fell 0.77%. 3. U.S. Treasury yields rose across the board, with the 2-year up 4.77 basis points, the 3-year up 4.96 basis points, the 5-year up 5.19 basis points, the 10-year up 4 basis points, and the 30-year up 2.66 basis points. 4. International precious metals futures generally closed lower. COMEX gold futures fell 0.85% to $4,267.90 per ounce, a weekly gain of 6.69%; COMEX silver futures fell 5.01% to $50.63 per ounce, a weekly gain of 7.15%. 5. The main U.S. crude oil contract closed up 0.46% at $57.25 per barrel, a weekly loss of 2.80%; the main Brent crude oil contract rose 0.46% to $61.34 per barrel, a weekly loss of 2.22%. 6. Most of the base metals in London fell, with LME tin futures down 2.07% to $35,030/ton, down 3.16% for the week; LME nickel futures fell 1.03% to $15,110/ton, down 1.11% for the week; LME zinc futures fell 1.03% to $2,942.50/ton, down 1.97% for the week; LME copper futures fell 0.38% to $10,607/ton, up 0.85% for the week; LME aluminum futures fell 0.36% to $2,778.50/ton, up 1.11% for the week; LME lead futures rose 0.31% to $1,971.50/ton, down 2.43% for the week.1. Hamas and Egypt discussed post-war security in the Gaza Strip. 2. Israels Defense Minister stated that those crossing the "yellow line" in Gaza would be met with retaliatory fire. 3. The UN Deputy Secretary-General entered Gaza and called for the opening of all crossings. 4. Guterres refuted Houthi accusations, posing a serious threat to the safety of UN personnel. 5. Market News: Pakistan "conducted precision airstrikes" in the Afghan border area. 6. Irans Foreign Minister stated that UN Security Council Resolution 2231 expires on the 18th, ending previous restrictions on Iran. 7. Sources: Afghanistan and Pakistan agreed to extend the 48-hour ceasefire until delegation-level talks can be held in Doha. 8. The Israeli Prime Ministers Office stated (in response to remarks by a senior Hamas official) that Hamas must disarm, "no ifs, no buts." 9. A senior Hamas official stated that it is impossible to definitively answer whether Hamas will give up its weapons. Hamas hopes for a three- to five-year ceasefire to rebuild Gaza, but stressed that it is not intended to pave the way for a new war.On October 18, local time, on October 17, US President Trump signed an executive order to impose a new 25% tariff on imported medium and heavy trucks and parts starting November 1. Trump said that a 10% tariff would also be imposed on imported passenger cars.According to Axios on October 18th, Nvidia (NVDA.O) and TSMC (TSM.N) will announce on Friday the completion of their first wafer in the United States, which will be made into Blackwell chips for artificial intelligence. This milestone represents one of the first achievements of the Trump administrations push to build AI technology in the United States and marks a key step in the USs competition to control the future of artificial intelligence. Nvidia founder and CEO Jensen Huang announced the development on Friday during a visit to TSMCs semiconductor manufacturing facility in Phoenix. Nvidia stated, "Nvidia and TSMC are working together to build the infrastructure that will support global AI factories in the United States." In a joint statement, Nvidia and TSMC stated, "TSMCs Arizona factory is expected to create thousands of high-tech jobs and attract a broad ecosystem of suppliers." However, while this wafer is an important first step in reshoring critical chip production to the United States, there is still a long way to go before the US can completely break free from its reliance on overseas companies and factories for chip demand.

Can Non-Americans buy the U.S. stock exchange?

Nov 16, 2021 10:11

The U.S. stock exchange has some of the biggest stock exchanges in the world, with total stock market worth of around $95 trillion as of August 2021. The Securities and Exchange Commission & U.S. federal government encourages non-American financial investment in the U.S. stock market and U.S. economy.

 

If you consider investing or trading these stocks, you should speak with an investment firm while handling American stock market. Let's very first understand what things a non-American resident needs for legally buying the U.S. stock market.

 

Identity Requirements


After the 9/11 terrorist attacks, the Patriot Act of 2001 was passed to stop individuals linked with terrorist activities from buying the U.S. stock exchange. With the execution of the Patriot Act, brokerage companies embraced a more rigorous system for validating user's identities, specifically non-American citizens. Under this law, the stockbrokers are needed to report any suspicious activity to the U.S. federal government.

 

There are brokerage firms that embraced their policies and may require their non-American customers to provide additional identity documents. Identity files can include:

  • Visa information.

  • A Certificate of Status of Beneficial Owner for United States Tax Withholding.

  • Legitimate social security number.

  • A W-8BEN form.

  • Other documents as defined.

 

Brokerage firms may require non-American residents to submit paper applications rather than filling an online application form to open accounts. These identity policies are only for keeping prohibited money away from the U.S. stock exchanges and do not affect the majority of non-American financiers. Nevertheless, you should deal with a trustworthy global broker to ensure that you comply with ever-changing regulations.

 

Opening a Brokerage account 


An international professional stockbroker will help you in the U.S. market to handle their financial investments. In addition, a broker in the U.S. will be familiar with browsing the intricacies of the U.S. stock market. A financier needs to have to open accounts that provide them access to the U.S. stock exchanges.

 

Tax implication while investing abroad


There are tax ramifications while trading in the U.S. when you're not a U.S. resident. Investors succeeding as non-tenant foreign nationals of the U.S. for tax purposes are not responsible for the capital gains tax on the incomes from their investments. Numerous other nations need their individuals to pay capital gains tax on incomes in the foreign market.

 

There are some limitations: for example, if the investor's country of house is associated with a settlement with the U.S., which will concur as a lower tax rate. Also, some investors are suitable for a lower tax rate on their additional earnings if interest-related earnings. International taxation rules are made complex; this is another factor that it may be recommended do a non-U.S. investor to work with a worldwide broker who is educated about the tax implication of buy a foreign market..

 

12 Things to Keep in Mind prior to Investing in Stocks


Purchasing a U.S. market seems to be an overwhelming task, specifically when you're a non-U.S. resident. No financial investment is risk-free; investing in the stock market nets a typical return of 7%, making an attractive financial investment strategy for the long term. Whether you to investing, comprehending what to know before purchasing stocks is important..

 

1. Purchasing stocks is one of the very best alternatives to consider.

 

Stocks are a popular method to invest cash, however it's far from the only choice. Depending on your requirements, earnings, and when you need accessing the money, you may benefit from different financial investment firms.

 

2. Buying stocks starts with substantial threat, especially in the short-term.


Usually, stocks are thought about the best financial investment technique in the long term, yet this market holds no return guarantee for its financiers. When we're speaking about the stock exchange, we need to understand that it's unstable, especially when we are discussing short-term financial investments. If we wish to invest our cash for the short term, we can generally go for numerous trusted and low-risk investment strategies.

 

Throughout history, as we can see that the stock exchange has seen a development at the average rate of about 7% per year. There are constantly possibilities that this unpredictable market can see extreme highs and lows every year. Often even long-lasting investments deal with losses in the stock market. Financiers ought to always be cautious with their financial investments.

 

3. Opening a trading account in the stock exchange can be done utilizing a brokerage's website online also.

 

Normally, investors open an account in a brokerage company and deposit money to invest in stocks. After including cash, a financier can notify the brokerage to acquire a specific stock for them. To do so, the brokerage will charge a certain amount of service cost from the investor.

Nevertheless, these current pandemic circumstances and lockdown constraints have actually motivated investors to seek online platforms for their stock trading activities. The majority of the financiers are developing trading accounts on their mobile devices, which is practical for new traders as it does not cost any trading costs and makes it simple for them to make small investments.

 

4. Each brokerage has its weaknesses and strengths.

 

Not all brokerage firms consist the very same strengths and weaknesses. While selecting a brokerage firm, you may require to consider your investment requires initially, and after that select a brokerage company according to its weakness and strength. You can discover some brokerages with outstanding robust customer support, and some will provide you low brokerage costs. The selection of the best brokerage will rely on your investment requirements..

 

5. Investing all of your money in the stocks of a single corporation can lead investments to high threats.

 

Some investors get lured as they see a brand-new business showing high growth capacity. They believe to make all of their investments because business's stocks by assuming more possibilities of success. It can never be a wise decision to invest all of your hard-earned cash in a single company's stocks. Making a single incorrect guess can make you lose all of your investments in a single night.

 

6. Diversifying your investments is an excellent strategy to play it safe.

 

It's much better to make investments in various business so we can prevent the possibility of risks. Diversifying your financial investments can secure them from losses in case if a company's stocks deal with a fall. The use of this strategy will make you pay a brokerage fee for several investments. This will lead to the loss of returns in the long run. When you diversify your financial investments in different business's stocks, you get to pay a brokerage cost for each deal. It makes it a pricey strategy for financial investment.

 

7. The majority of the stocks pay returns as dividends, which offers a regular source of income without offering shares.

 

Dividends are partial revenue shares of a company that is distributed between shareholders, usually every quarter. As you purchase shares of a business, you get qualified to get your part in dividends. Dividends are a little part of your total investment in a business. It can be added up more if you have actually made a substantial investment in the stock market. Dividends can be raised, reduced, or removed based upon the company's current monetary condition.

 

8. Your mutual funds are just a collection of investments or stocks.

 

A mutual fund is usually a collection of different sort of financial investments. They can be made completely out of stocks, but they can likewise be consisting of other types of investments like bonds, wealthy metals, or overseas currencies. You will be charged a yearly cost for the upkeep and management of your mutual funds. It's better to research study mutual funds first so you can understand what a mutual fund purchases and how they run from business to company.

 

9. An index fund is a specific fund governed by simple rules and having a meager management expense.

 

Index funds are a common kind of mutual funds usually run under a simple set of criteria. These funds typically purchase shares represented in a stock exchange index like the S&P 500 or The Dow Jones Industrial Average. As these funds don't require much management, they cost a weak amount of the associated fees..

 

10. Index funds are the most decent stock financial investments for the majority of the investors.

 

If you are a new investor and looking for an excellent start in the stock market, index funds can turn out to be the perfect financial investment chance for you. You don't require to study index funds prior to investing in them as they constantly match the stock market.

 

11. Tax-deferred accounts like a 401( k) are an outstanding choice for those who buy their retirement plans.

 

If you wish to conserve up cash for your retirement, tax-deferred pension can be the best choice for your financial investment strategies. These accounts save you from income tax payments on your cash unless you want to withdraw it at the time of retirement. These accounts are a good alternative to grow your money more in time.

 

12. Taxes on stocks are not as frightening as you believe them to be.

 

People take taxes on financial investments seriously, but it's worthless to stress over them excessive. Tax-deferred accounts conserve you from taxes as you need to pay routine taxes only, excluding your retirement financial investments. Standard brokerage account financial investments owe taxes just on your revenues and dividends.

 

Advantages of investing in the U.S. stock market

 

As we understand, the U.S. stock market is among the largest stock exchanges worldwide, where you can purchase different sectors varying from energy to innovation to autos and many others. To choose why you must buy U.S. stocks, let's talk about the advantages of the U.S. stock exchange


Worldwide demandable

 

The United States Stock markets are extended worldwide as business from all over the world are listed in different exchanges. You can likewise invest in companies from your home country or any global company like China, Japan, Germany, and so on


The U.S. markets supply access to a global market unlike any other stock market, and its reach throughout the world is unmatched. By diversifying your portfolio throughout several companies, you decrease risk and preserve a varied portfolio.

 

Variety

 

The market capitalization of these sectors just makes up 34%. By investing in these markets, you end up being independent of the Indian stock market and the Indian economy.


On the other hand, the U.S. stock exchange is quick to recuperate from unexpected occasions, and the COVID pandemic in 2015 worked as proof of its strong structure that makes sure much better returns while reducing threat.

 

The dollar worth

 

In terms of currency worth, U.S. dollars are amongst the greatest currencies worldwide that rarely fluctuate versus each other. Investing in U.S. dollars is an excellent method to develop long-term wealth and earn more revenues.


By way of example, if you purchased a Google share in 2005 for $90, the worth of that exact same share would be $1,606 in 2020..

 

Tax Rules

 

Investors from abroad countries are often concerned about tax guidelines impacting them on the U.S. stock market. Meanwhile, Indians are only liable for 25% tax based on U.S. laws, much less than foreign financiers..

 

DTAA (Double Taxation Avoidance Agreement) is a tax treaty signed between the U.S. and India to avoid double taxation. You can utilize the USD 25 of foreign tax credit to reduce your Indian tax liability by balancing out the U.S. kept tax versus dividend payments.

 

Market Capitalization

 

According to Market capitalization, the United States Stock Market has 500 of the biggest business listed on its stock market. NASDAQ and NYSE companies are included in this index.

 

In this list, Amazon, Tesla, Facebook, Alphabet (Google), Apple, Hathway, JP Morgan Chase, etc, are among the leading 10 companies and represent 27.5% of the market cap. If you are looking for a long-term financial investment with constant dividends, you should look for these companies.

 

Innovation


A number of ingenious business keep emerging on the U.S. stock market. You can investigate all of them to grow your journey towards buying the Stock market carefully. As individuals invest more in the U.S. market, they are getting more benefits than they are not gaining from their regional exchanges.

 

Volatility

 

U.S. dollars are widely regarded as among the most robust and most steady currencies worldwide, as shown by their capability to sustain the Coronavirus pandemic. Over the past couple of years, the rupee has only compromised against the dollar. As a result, purchasing U.S. stocks with cautious financial investments helps to benefit from this truth.

 

No doubt, buying the U.S. markets is more stable in the long run. Additionally, it alleviates the risk of unpredictable markets by diversifying the portfolio over various segments and letting economic elements influence the danger in numerous economies.

 

Final Words

 

US Stock market is among the primary pillars of the nation's financial system, and U.S. citizenship is not needed to trade-in U.S. companies. It indicates Non-American and International financiers can invest and open a brokerage account in the U.S. stock exchange. It is crucial to acknowledge the various forms and policies that apply to non-US taxpayers. It is recommended to keep some vital things in mind while investing U.S. market in getting risk-free and successful results.

 

Even though investing in the stock market is a tough job, investment planning is needed to gain revenue. Today, different platforms provide to invest in U.S. stocks.