(Washington) The New York Stock Exchange finished without clear direction on Monday, ultimately showing little enthusiasm after the announcement of a commercial compromise between Washington and Brussels, at the start of a week in charge of economic data and business results.
The Dow Jones fell 0.14 %while the NASDAQ (+0.33 %) and S&P 500 (+0.02 %) indices grappled a few points to reach new records.
Questioned by AFP, Angelo Kourkafas, by Edward Jones, evokes “a more moderate than mixed reaction” at the announcement of the Agreement between the European Union (EU) and the United States.
In question, according to the analyst, the reception of a “good expected news” of which “a large part had already been anticipated by the markets on Friday”.
President Donald Trump and the president of the European Commission Ursula von der Leyen drew the contours on Sunday in Scotland of a customs agreement providing that European products exported to the United States will be taxed at 15 %-against 30 % a time envisaged by Washington.
In addition to customs duties imposed on European products, the EU has engaged at $ 750 billion in energy purchases and 600 billion additional investments in the United States.
The other terms are not yet known and should be shared by the EU and the United States in a joint declaration in the coming days.
This new compromise is added to those already announced by Washington, especially with the United Kingdom and Japan.
According to Angelo Kourkafas, “it is great that the announcement of these agreements reduces uncertainty” on the commercial level, a few days before the deadline of 1is August, from which important customs duties must be applied to products entering the United States.
“But at the same time, […] There are many potential catalysts of volatility, which explains why investors are a bit cautious as the most busy week for the markets for the markets, “said the analyst.
In terms of indicators, market players will host, among other things, the employment report in the United States on Tuesday, a first estimate of American GDP for the second quarter on Wednesday and the PCE index on Thursday, inflation gauge privileged by the American central bank (Fed).
Wall Street will follow the meeting of the Fed Monetary Policy Committee (FOMC) at the end of which the institution should leave its rates unchanged, in a range between 4.25 % and 4.50 %. The decision is expected on Wednesday at 2 p.m. (eastern time).
Furthermore, the relative wait -and -see attitude observed on Monday is explained by “a need for a period of consolidation” after a chain of sessions in the green, judge Angelo Kourkafas. “Let us not forget that the markets do not evolve in a straight line,” he adds.
On the bond market, the yield of American state loans at 10 years old was slightly tied, at 4.41 % against 4.39 % Friday at the end.
On the business side, the Stellantis group (Peugeot, Citroën, Jeep) was weighted (-4.24 % to 9.70 dollars) by the absence of exemption for the automotive sector in the agreement between the EU and the United States.
The values of the energy sector were carried by European purchasing prospects, like Global Venture (+4.19 %), New Fortress Energy (+5.56 %), Chevron (+0.93 %) or Exxonmobil (+0.94 %).
Anheuser-Busch brewers (-5.48 % at 66.35 dollars), Molson Coors (-2.48 % to 49.92 dollars) and the alcohol distributor Constellation Brands (-1.66 % to 172.60 dollars), owner of Corona and Modelo beers, also fell to the announcement of this agreement.
TSX declining
The Toronto Stock Exchange closed Monday’s session on a decline of 0.32 %, due to losses in the basic metal, industry and communities services, despite gains in that of energy.
The S & P/TSX compound index of the Toronto prosecutor’s office left 88.93 points to finish the session with 27,405.42 points.
On the currency market, the Canadian dollar has been negotiated during the means of 72.87 Cents US, down compared to that of 72.97 Cents US on Friday.
Canadian press
