Wall Street has ended in a disorganized manner on Friday after a meeting sawtooth, remaining cautious while the us president has announced a number of measures against China, without, however, raise a broader trade war.
Its index feature, the Dow Jones Industrial Average declined 0.07% to 25 383,11 points while the Nasdaq, in high coloring technology, has gained 1.29% to 9489,87 points.
The S&P 500, which represents 500 largest companies of Wall Street, has risen from 0.48% to 3044,31 points.
Donald Trump who promised Thursday to speak on China on Friday, without giving more details, the investors were in expectation of the possible sanctions that the u.s. president could impose.
Speaking finally in the end of the session, the tenant of the White House has estimated that China’s behaviour vis-à-vis Hong Kong was “a tragedy” for the world, and announced restrictions on entry in the u.s. for chinese students. It has also announced that it launched the process of elimination of the exemptions granted to Hong Kong in the context of the revocation of his special status.
“But we feared that it might raise an escalation of trade measures of retaliation between the two countries”, points out Shawn Cruz, TD.
Mr. Trump has not discussed any possible taxes and customs “for the moment, this should not bring us back as in 2018 and 2019, when the market was guided by the trade tensions between China and the United States,” he adds. “What matters to investors remains the reopening of the economy.”
The indicators have continued to show the effects of the restrictions imposed to stop the spread of the disease Covid-19 on the economy, including a fall in household spending of 13.6% in April, but have also made encouraging signs.
If wages decreased, the income of households at the same time increased by 10.5%, thanks to the various assistance provided by the authorities.
Result: the savings of Americans are at a historical high, with a household savings rate of 33%. This could result in a resumption of consumption once the economy will be re-opened.
Another positive element is that the consumer confidence measured by the University of Michigan leaves a slight increase in may.
On the bond market, the rate on 10-year u.s. debt retreated, moving to 16: 20 to 0,6493% against 0,6900% on Thursday evening.