Wall Street Recovers at the Last Minute, Despite the Negative Outlook of the Commercial War
Stocks of the New York Stock Exchange fell half a day after the United States and China failed to reach a trade agreement and imposed a new wave of tariff increases to Chinese products imported for more than 200 billion dollars.
The decline on Friday extended the decline in stocks that had seen all April gains wiped out and the S & P 500 index had its week with the biggest losses of the year.
However, in the last hour, the market turned green and managed to regain its splendor, after Treasury Secretary Steven Mnuchin said that discussions on a possible trade agreement with China were “constructive”, only hours after the imposition of tariffs on Chinese products imported by the United States.
As a result, at closing, the exclusive S & P 500 indicator closed upwards with 2886.75 points, + 0.49%.
For its part Nasdaq, was strongly affected by the two big news today. First the bad performance of Uber in its exit to the Stock Exchange and on the other hand, the technological companies will be the most affected by the tariffs imposed by the US to China, given the strict relationship of interests that you have most of the companies in the index in the Asian country.
Although the index at the close had a re-boost, and ended the week with 7610 points, + 0.19%.
The Dow Jones, for its part, got drunk with optimism following Donald Trump's announcement that the talks with China will continue “in a very pleasant way” and that it will increase its purchases of domestic agricultural products for humanitarian aid in an effort to compensate for the loss of the Chinese demand while the commercial tension between both nations persists.
At closing, the DJI earned 80 points, to finish with 25,942.37 units, + 0.44%.
The rest of the markets reacted positively at the end of the day. In Europe, the Spanish IBEX35 gained + 0.25%. The German DAX a + 0.72%, The French CAC40 grew + 14.29% but the English FTSE 100 had a disappointing performance despite the good news about the English economy, which contracted -0.06%.
In Asia, the market bounced back, despite tariffs imposed by the United States, Shanghai grew by + 3.10%, and the Hang Seng index was up + 0.84%.
The big loser was the Nikkei 225 index of Japan with -0.27%.
In terms of the energy market, Texas oil fell -0.1% to close at 61.66 dollars a barrel, linked to the fact that the tighter supplies compensated the markets' concern about the commercial pulse between the US and China, consumers of the 34 percent of the national crude.
For its part, Brent, the benchmark crude for the North Sea for Europe, rose 0.33% to $ 70.62 a barrel. However, investors are waiting for the outcome of the US-China trade war, as they fear that tensions may affect oil demand.
Regarding the Forex market, the Euro remains in the green levels, when the EURUSD pair is trading at 1.1245, + 0.16%.
The Pound Sterling fell by -0.02% and the dollar strengthened against the Japanese Yuan by + 0.23%.
For its part, Gold gained two dollars an ounce, to close at 1285.98 dollars a troy ounce, + 0.15%
And finally Bitcoin continues to gain traction, by trading above the 6400 unit, a vertiginous growth of + 2.52% in the last 24 hours that has led it to increase its market dominance by almost 60%.