Sunday , July 3 2022

Stock Market: Wall Street down under the pressure of a trade war



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Brokers on the floor of the New York Stock Exchange.

(Photo: Getty Images)

The New York Stock Exchange withdrew on Monday, still burdened by concerns about the impact of current Sino-US tensions on global growth.

Indexes

About 12h, the index S & P / TSX Composite Index The Toronto Stock Exchange fell 15 points, or 0.1%, to 16 334 points.

In New York, The S&P 500 gave 24 points, or 0.84%, to 2 984 points.

on Dow Jones lost 269 points, or 1.02%, to 26,018 points.

on Nasdaq fell by 54 points, or 0.68%, to 7,904 points.

The context

Wall Street already unfolded last week in the wake of headlines about the Washington-Beijing trade war, the Dow Jones registered a weekly loss of 0.8% and a Nasdaq of 0.6%.

On Monday morning, "investors continue to evaluate US-China relations, as well as protests against the Hong Kong government," a briefing analysts said.

President Donald Trump on Friday warned that the United States is "not ready" to enter into a trade deal with China and that it does not rule out canceling talks scheduled for September in Washington, eliminating the prospect of impending customs sanctions imposed on both sides.

To these vexing worries are added the unrest on Monday in Hong Kong, where the airport on Monday made the rare decision to cancel all its flights after thousands of protesters stormed its arrivals hall to protest police brutality.

Since June, the former British colony has been the scene of almost daily demonstrations against Beijing.

These events "have not yet directly affected US exchanges, but given limited information about companies and the economy (this Monday), they are catching the attention and weighing on investor sentiment," say briefing analysts.

In the bond market, the interest rate on 10-year US debt fell again to 1.681% against 1.7447% on Friday night, a sign of strong demand for this asset, considered a safe bet.

He took advantage on Monday that "financial markets around the world remain volatile due to tensions between the US and China, exacerbated (last week) by the fall of the Chinese currency below the psychological threshold and by the Fed's recent decision to cut rates and predict further declines. by the end of the year, "commented analyst Charles Schwab.

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