Wall Street, focusing on the Huawei case, dives to the fence


Wall Street ended the week in a dive on Friday, hit by the case of Huawei that threatens Beijing and Washington with an open crisis while the two capitals are already entangled in difficult commercial negotiations.

According to preliminary results in the closing, the flagship index of Wall Street, the Dow Jones Industrial Average, lost 2.24% to 24.388.95 points.

The Nasdaq index, with a strong technological color, fell 3.05% to 6,969.25 points.

The broad S & P 500 index lost 2.33% to 2,633.08 points.

The three indices recorded the worst week since March, with the Dow Jones down 4.50%, the Nasdaq down 4.93% and the S & P 500 down 4.61%.

"The market is totally confused" on Huawei's justice case that threatens relations between China and the United States, said Tom Cahill of Ventura Wealth Management.

The head of finance for the Chinese telecommunications giant, arrested Saturday in Canada at the request of the United States, is accused of "fraud" by US justice, was learned on Friday during his appearance before a judge in Vancouver.

It is believed that Meng Wanzhou lied about a branch of Huawei to gain access to the Iranian market in violation of US sanctions, according to documents read at a court hearing in Vancouver.

This case comes at the worst time for the relationship between Beijing and Washington, mired in very difficult commercial negotiations after a 90-day truce granted by Donald Trump after a G20 in Argentina last weekend.

In this context of excitement, comments by Donald Trump, a consultant in trade and industry, Peter Navarro, in an interview with CNN Friday, also have less reassured investors.

"This hawk reminded everyone that the president would raise his rates to 25% on assets of $ 200 billion (Chinese imports) if the discussions failed within 90 days of truce," Briefing analysts reported.

Almost all the eleven subsectors that make up the S & P 500 have suffered from this complicated weekend, as energy managed to limit losses thanks to a surge in oil prices.

The session was also marked by the publication of a monthly report on employment in the United States, which shows less robust work creations than expected.

But the relationship was quite neutral on the market because it was "good enough to maintain good growth prospects, but not good enough to justify strong action by the Fed," the US central bank on tariffs, said Chris Low of FTN Financial .

On the bond market, the US 10-year rate was 2.85% at 21:20 GMT, against 2.866% on Thursday at the close and 30 years at 3.177%, compared to 3.16% on the previous day.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.