Wall Street reassured about the size of new import taxes


The New York stock Exchange ended higher Thursday, showing a cautious optimism after announcements from the White House formalizing new import taxes while leaving the door open to several exemptions.

Its index feature, the Dow Jones Industrial Average, has gained 0.38 per cent to 24.895,21 points. The Nasdaq, in high coloring technology, appreciated by 0.42% to 7.427,95 points. The expanded index S&P 500 took up 0.45% to 2.738,97 points.

The indices of the square in new york city, as since the beginning of the week, fluctuated Thursday at the discretion of the headlines on the import tax of steel and aluminum defended by Donald Trump.

After several days of intense speculation, the us president has finally signed the controversial bill in any end-of-session.

The latter provides, among others, that Canada and Mexico are exempted from the taxes “for the moment”, waiting to see what happens in the ongoing negotiations on the free trade Agreement north american (Nafta).

According to an official of the executive or american, all countries concerned will also initiate discussions with the United States to negotiate, also, a possible exemption.

Beyond the clarification that these ads bring in, they soothe the fears of an implementation of customs barriers widespread, noted Karl Haeling of LBBW.

“If all the exemptions are confirmed, this means that the imposition of the taxes may ultimately be very limited,” he stressed.

Investors, however, remain on their guard, according to Christopher Low of FTN Financial.

“The possibility of a trade war makes them nervous,” and the markets “will react to any retaliation that could decide Europe or other trading partners”, he advanced.

In the beginning of the session, the indexes were helped by the european central Bank (ECB) maintained on Thursday its key interest rate at a record low, but has also renounced to integrate in its press release the phrase, repeated at every meeting since December of 2016, providing “increase”, if necessary, its wide-ranging program of asset purchases.

“Market participants are well aware that Draghi and the ECB are ready to do more if needed, but the change of words in the press release can be seen as a signal of implied” of the ECB on the economic conditions in the euro area, said Patrick O’hare of Briefing.

The bond market time: the borrowing rate to 10 years of the United States fell to 2,859%, compared to 2,883% Wednesday evening, and one to 30 years, 3,125%, compared to 3,150% to the previous closing.

Leave a Reply