Recession fears push mood on US exchanges

New York Stock Exchange

The trade war between the US and China hampered Wall Street trading last week.

(Photo: AP)

new York The fears of a global recession as a result of the US / China trade conflict have left investors in Wall Street at a whopping start to the day. The Dow Jones Index of Defaults opened 0.7 percent lower at 26,113 points. The broader S & P 500 lost 0.5 percent to 2903 points. The index of the technology exchange Nasdaq was down 0.5 percent to 7920 digits.

If the US and China do not agree, new punitive tariffs will come into effect on September 1st. "If US President Donald Trump postpones this date, we might have some rest for a while, but as long as the threat of new tariffs is in place, volatility will remain high," said Randy Frederick, vice president of trade and derivatives Charles Schwab,

The US bank Goldman Sachs no longer assumes that the dispute will be settled before the US presidential elections in 2020. At the same time, the experts lowered their forecast for US growth towards the end of the year. The global economic climate of the Munich Ifo Institute also clouded over.

Investors sought protection in bonds, which lowered the yield of US bonds. This put pressure on bank stocks that are particularly sensitive to lower interest rates: the papers of the Bank of America, Citi and JPMorgan lost between 1.8 and 2.5 percent.

Finance briefing

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