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Wall Street has again hit trade strains



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New York (AFP)

Wall Street ended Friday after a broken session, preserving Sino-US trade tensions outperforming more positive elements such as consumer confidence or rising tariffs for Canada and Mexico.

The leading New York Stock Exchange index, Dow Jones Industrial Average, fell 0.38 percent to 25,764.00 points.

The Nasdaq high-tech index dropped 1.04 percent to 7,816.28 points.

The broad index S & P 500 declined by 0.58% to 2,859.53 points.

"It is a habit, but unfortunately, the driving force behind this downturn is still related to trade negotiations between China and the United States," said Art Hogan of the National Investment Company.

After the sudden drop in the Monday market triggered by the announcement of Chinese revenge for the new obligations imposed by President Donald Trump, "investors seemed a bit more optimistic," he said. The tone had gotten up, but the door was obviously still open.

On Friday, however, several press releases pointing to the situation that is now more fueled by Beijing, or even full-marriage talks, have darkened this prospect.

"It looks like the door really closes," Hogan said.

During the week Dow Jones brought 0.7%, Nasdaq 1.3% and S & P 500 0.8%.

The Friday indices recovered during the session following the publication of a study in the University of Michigan showing an increase in US consumer confidence to its highest level since 2004.

This figure for personal consumption, the main engine of growth in the US, "supports the idea that the United States is in a good position to cope with external pressure," said Patrick O'Hare of Briefing.

Washington's announcement that the abolition of tariffs for steel and aluminum from Canada and Mexico, imposed for almost a year, is not enough to revive enough investors. However, this decision poses an important obstacle to the ratification of the free trade agreement between the three countries.

Investors also reacted a little to the formalization that was expected, the postponement of additional duties in the automotive sector, especially by European manufacturers.

On the bond market, the 10-year US debt rate stabilized at 20:20 GMT to 2.392%, against 2.394% on Thursday night.


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