© Reuters. WALL STREET ENDS IN A DISORGANIZED MANNER
by Medha Singh and Caroline Valetkevitch
NEW YORK (Reuters) – Wall Street has ended in a disorganized manner and at the lowest spreads Friday before a long weekend, the stock Exchange being closed on Monday for Memorial Day, the gains of the values high tech has, in part, offset the losses of the oil companies.
The Dow Jones has declined in the wake of the energy values and of the oil market, saudi Arabia, and Russia being willing to ease an agreement of supervision of the production that has pulled oil prices to their highest levels since 2014.
The S&P segment has left 2,61%, biggest loss by far of the 11 major sectoral indices of the S&P, and the 31 values in the component have almost all finished in the red. It is also its greatest percentage decline since early February.
The markets have suffered this week the winds of geopolitics, powered by the trade tensions between China and the United States, the latter threatening in addition to impose customs duties on imported cars, and on the incertiture weighing in on a planned summit between Washington and North Korea.
The american president Donald Trump, who canceled Thursday its meeting scheduled for 12 June in Singapore with his counterpart, north Korean Kim Jong-un, however has the doubt.
Friday, in front of journalists, he did not exclude that the summit is cancelled because of the “hostility” of Pyongyang, could finally stand, perhaps even to the date originally planned.
The Dow Jones has lost 58,67 points, or 0.24%, to 24.753,09 points, in exchange provided before a weekend of three days. The S&P-500 gave up 6.43 points (or 0.24%) to 2.721,33 points. The Nasdaq Composite gained 9.43 a points (0.13 per cent) to 7.433,85 points, thanks in particular to the founder of Broadcom (NASDAQ:AVGO), which has taken on 2,67%.
Throughout the week, the Dow gained 0.15 percent, the S&P to 0.31% and the Nasdaq up 1.08 per cent.
“It may be that we do not want to have open positions over the weekend with so many things uncertain,” said Thomas Martin (GlobALT Investments).
The jump of more than 20% of Foot Locker – the distributor of sport shoes having announced a quarterly profit better than expected – has supported the index values of consumption out of necessity, that which only, however, a meager gain of 0.2%.
The volume was of the order of 5.8 billion shares traded compared with an average of 6.6 billion in the last 20 sessions.
The decline in the oil market has benefited the dollar, which posted a 0.6% gain on the week opposite a basket of currencies of reference. It has achieved in meeting a peak of 94,249, the highest since mid-November.
“There’s some bounce on the parities cross, especially against the currencies linked to raw materials,” notes Karl Schamotta (Cambridge Global Payments. “It really supports the dollar on a weighted base”.
The dollar has gained about 0.75% against the canadian dollar and 0.37% against the australian dollar.
Therefore, it has not been bored beyond measure by the decline in Treasury yields. These latter attract the investor who does not appreciate the signs of political instability in Europe, in Spain and Italy in this case.
Giuseppe Conte, appointed president of the Italian Council, is struggling to form its government in the framework of an agreement between the League (far-right) and the Movement 5 Stars (populist), as the markets are concerned the constitution of a eurosceptic government in which the policy would threaten the fragile public finances of italy.
The president of the Spanish government, Mariano Rajoy, refused Friday to hold early parliamentary elections, as demanded the Spanish socialist Party (PSOE) and the training centre Ciudadanos in the wake of the corruption conviction of his popular Party (PP).
Technical elements also contributed to the decline in yields, after 10 years, for example, had reached last week to a peak of nearly seven years of 3,128%.
A request for the end of the month has finally helped to support the prices of Treasuries.
(With Saqib Iqbal Ahmed and Karen Brettell)