© Reuters. WALL STREET OPENS DOWN
by Blandine Henault
PARIS (Reuters) – The New York stock Exchange opened sharply lower on Wednesday as fears that the U.s. implement protectionist measures that have been revived by the resignation of Gary Cohn, the chief economic adviser to Donald Trump at the white House.
A few minutes after the opening, the Dow Jones index loses 205,03 points, down 0.82%, to 24.679,09 points.
The Standard & Poor’s 500, wider, fell by 0.55 per cent to 2.713,17 points and the Nasdaq Composite yield 0,48% 7.336,74 points.
The resignation of Gary Cohn, known to oppose the supporters of protectionism within the u.s. federal government suggests to investors that Donald Trump is actually committed to the implementation of his project of a tax on us imports of steel and aluminum.
“The now former economic advisor to Donald Trump, was the keystone of the president in charge of the development of the projects of tax reform and renovation of the infrastructure. The resignation last night is going so slow this last reform central to the u.s. government, and leave the field free, in the white House, a group of advisers favourable to protectionism”, point to the strategists of Mirabaud Securities.
The compartments of the construction, basic materials and banks were among the largest declines sector on Wall Street.
The industrial giants in the u.s., which would be exposed to an increase of their manufacturing costs with the implementation of tariffs on steel and aluminum, are also neglected.
Boeing (NYSE:BA) is down and 1.38%, and Caterpillar (NYSE:CAT) is losing 1.58 percent.
General Electric (NYSE:GE) also lost 0,99%. According to Deutsche Bank (DE:DBKGn), the conglomerate is one of the values that are the most exposed to risks related to a possible surge in customs duties on steel and aluminum.
DOLLAR AND YIELDS LOWER
Fears of a trade war between the United States and its international partners weighs on the dollar and promotes the assets considered refuge as the yen and sovereign bonds.
The greenback is evolving close to a low point of 14 months against the yen and the yield on Treasuries to 10 years evolves around 2.87%.
The dollar, as yields on enprunts of State americans, however, are far from their lowest in session at the announcement of job creation stronger than expected in February in the United States.
According to figures from the firm ADP, the private sector in the United States has created cover 235,000 jobs last month, against 195.000 expected by economists, of good omen before the release, on Friday, the official report on employment in the private sector and the public.
In Europe, the stock markets erased gradually their losses of the morning but the trend is still fragile.
The Dax (+0,71%) and the Footsie 100 (+0,27%) are doing better than the other indices due to the growth of Lufthansa (DE:LHAG) (+4,07%) and Rolls-Royce (+13%).
The index of pan-european Stoxx 600 grappille about him was 0.13%.
Investors are now waiting for the release at 19: 00 GMT, the “beige book” of the federal Reserve (Fed) which is expected to confirm the diagnosis of the new president of the institution, Jerome Powell, on the dynamism of the american economy.
In Europe, the important date is set for 12.45 pm GMT on Thursday with the monetary policy decision from the european central Bank (ECB).
(Edited by Patrick Vignal)