© Reuters. WALL STREET ENDS DOWN
by Stephen Culp
NEW YORK (Reuters) – The New York stock Exchange has finished down on Friday, held back by fears of a trade war between the United States and China after the decision of Donald Trump to impose tariffs on $ 50 billion of chinese products and the response to the same, from Beijing.
The Dow Jones has lost 84,83 points, or 0,34%, 25.090,48.
The Standard & Poor’s 500, wider, fell 3.07 points, or 0,11% to 2.779,42.
For its part, the Nasdaq Composite, which had opened higher, fell 14,66 points, or 0.19% to 7.746,38.
On the week, the Dow has lost 0,89%, the S&P-500 has grappillé 0.01% and the Nasdaq gained 1,32%.
The american president announced on Friday that the rights of 25% would be applied on $ 50 billion of imports from China on 6 July.
In retaliation, the Council of State (government) of china has decided to impose taxes of 25% on 659 american products with a total value of $ 50 billion, reported the new China news agency.
Beijing has already published a list of products from the United States, representing $ 50 billion, including soy, planes and cars, which may be subject to customs fees.
The two countries have held several rounds of negotiations since early may, but have not yet concluded an agreement, the United States is putting pressure on China to reduce its trade deficit of $ 375 billion (323 billion euros.
“The market sells, although not massively, first because of renewed fears of a trade war,” said Peter Tuz, president of Chase Investment Counsel. “It may be that people become accustomed to just the rhetoric and take a little bit of distance.”
“A lot of people might have surréagi at the beginning of the day,” believes his side, Robert Pavlik, a strategist and a managing director at SlateStone Wealth.
The ENERGY LOSES MORE THAN 2%
The large-value exporters have suffered. The world number one in construction equipment Caterpillar (NYSE:CAT) has dropped and 2.04%, and Boeing (NYSE:BA), the first u.s. company exporting to China, has lost 1.25 percent. The two groups have signed, respectively, the first and the third worst performance in the Dow.
Five of the 11 sub-funds of the S&P-500 ended in the red. With -2,11%, the energy sector has accused the biggest decline, penalized by lower oil prices. Chevron (NYSE:CVX) has dropped 1,95% and Exxon 1.50% of, respectively, second and fourth worst performance in the Dow.
The construction sector, the reverse has ended with a gain of 1.32% and telecom has taken 1,17%.
Values, Adobe has let go of 2.43% in the aftermath of the publication of forecasts for the third quarter is considered too conservative.
The session was also marked by the expiry of simultaneous quarterly options and futures u.s., which tends to increase the volume of transactions.
About 9.9 billion shares changed hands on u.s. markets, compared to 6.9 billion, on average, during the past 20 sessions. This is the volume the more important since the 8 February, the date on which the S&P-500 has touched its lowest level of the year so far.
Investors also assess the consequences of the tightening of the monetary policies of central banks on stock markets.
The federal Reserve statement on Wednesday its key interest rates for the second time this year and was said to provide for two further increases this year.
On Thursday, the european central Bank (ECB) has announced that it will stop at the end of 2018 program net purchases of assets, while indicating that it would not increase its rates until at least the summer of 2019.
To fall back ON STATE BORROWING
On the foreign exchange market, the escalation of tension on the front of a commercial in a decline in the dollar against the yen. In the Face of a basket of reference currencies, the greenback gained 0.03% and recorded a weekly advance of 1.3%, its best performance in seven weeks.
The euro, which had lost 1.88 per cent on Thursday in reaction to the announcements of the ECB, has taken up 0.35 percent against the dollar to 1,1608 dollar, on purchases to good account.
The renewed risk aversion triggered by the trade tensions is reflected by a downturn on the government bonds. The Treasury yield u.s. ten-year income 2,910% against most of 2,946% on Thursday and its German equivalent fell nearly 0.4%, after you have enrolled in session a low of 10 days to 0,376%.
On the front oil, the price of crude oil ended sharply lower in New York, a week of the Opec meeting in Vienna and its partners, which could lead to an increase in production. The light crude, american has lost more than 2.5% and the Brent more than 3%.
(With Sruthi Shankar; Catherine Mallebay-Vacqueur for the French service)