(Washington) The New York Stock Exchange ended the week in the red on Friday, revealing its fears about the multiple customs threats of Donald Trump, including those aimed at Canada.
The Dow Jones lost 0.63 %, the Nasdaq 0.22 %index and the enlarged S&P 500 index dropped 0.33 %.
“A new series of customs duties on the part of President Trump weighs on the risk of the risk at the end of the week, while the actions come back up new records reached during yesterday’s exchanges,” said Jose Torres, of Interactive Brokers.
US President Donald Trump was again targeted in Canada on Thursday, by imposing 35 % surcharge, one of the highest rates announced since the start of the week, accusing the second trade partner of the United States for retalling his customs duties.
Since the beginning of the week, around twenty countries, mainly Asian, have already received a letter aimed at notifying them the surcharge rate which will be applied to their products from 1is august.
Questioned by AFP, Adam Sarhan, of 50 Park Investments, believes that the reaction of the march remains “really upward”, despite the perspective observed on Friday.
The Nasdaq and the S&P 500 have both made several records at the end in recent days.
“We have not yet seen new substantial customs duties be actually applied,” he explains.
Investors are also waiting for the spell that will be reserved for several powers, including India and the European Union.
For the coming week, “a long list of important data” will be able to give management to the market, warns Jose Torres.
Market players are waiting in particular to figures for inflation on the consumer side (ICC) and producer (PPI) next week. A new indicator on consumer confidence will also be published.
“Economists and investors will closely monitor whether the customs duties imposed by Trump have repercussions on the supply chain or stores, and will use this information to assess the pace to which the Fed descends the steps of the staircase of monetary policy,” said Torres.
The vast majority of investors believe that the American central bank will maintain its rates at this level at the end of its next meeting, according to the indicator published by CME, Fedwatch.
But they are less and less to anticipate a rate drop in September.
On the bond market, the yield of the American loan at ten years was clearly tied at 4.42 %, against 4.35 % the day before at the end.
On the table of values, the manufacturer of Levi Strauss jeans (+11.25 % to $ 21.95 jumped, carried by quarterly results superior to expectations, in particular a net profit per share of 22 cents where analysts were tabling on 13 cents. The company also noted its forecasts for the year.
The Strategy company (+3.04 % to 434.58 dollars) larger private owner in Bitcoins, took advantage of the record level of the most capitalized of cryptocurrencies.
The British oil giant BP gained 3.55 % to $ 32.64, after having announced to expect an increase in production and better performance in refining and oil trade.
Airlines lost ground, after taking advantage of the good results of Delta Air Lines on Thursday. American Airlines dropped 5.56 % to 12.22 dollars, United Airlines lost 4.34 % to 87.89 dollars and Delta limited the breakage, dropping 0.23 % to 56.65 dollars.
Toronto also decreasing
The main Canadian stock market index closed the downward session on Friday, weighed down by the losses of the technology and non -cyclical consumption sectors, while the US stock markets also fell.
The S & P/TSX compound index of the Toronto prosecutor’s office lost 59.05 points to finish the session at 27,023.25 points.
On the currency market, the Canadian dollar exchanged during the average price of 73.08 cents US, unchanged compared to Thursday.
On the New York Raw Materials Stock Exchange, the crude oil price won US $ 1.88 at US $ 68.45 per barrel.
The price of gold increased from US $ 38.30 to US $ 3,364 per ounce.
Canadian press
