Wall Street in the grip of commercial tensions



by Wilfrid Exbrayat

PARIS (Reuters) – Like its European counterparts, Wall Street closed lower on Wednesday, wiped out by Chinese threats to the United States in the trade dispute that opposes them and which one would fear could last. and does not seriously harm global growth.

The Chinese official press reported that China was ready to use its dominant position in the rare earths – a group of 17 metals used in many sectors ranging from consumer electronics to military equipment – as a weapon in negotiations with Washington. .

Moreover, the Chinese telecommunications group Huawei is seeking a summary judgment in the United States on the procedure it has launched against the US authorities to denounce the sanctions against him.

"It's all: a long-standing business dispute, tasteless data and a cautious Fed, investors mix all this and give a little bit of accounting", says Jack Ablin (Cresset Capital Management).

The Dow Jones index lost 221.36 points (0.87%) to 25.126,41 points. The larger S & P-500 lost 19.37 points (0.69%) to 2,783.02 points. The Nasdaq Composite left 60.04 points, or 0.79%, 7,547.31 points.

Trade disputes and fears of slowing global growth drive investors not to invest in safer stocks, such as German and US government bonds.

The performance of the US benchmark has fallen to a minimum of 20 months and the yield curve, between the three and 10 year maturities, has reversed again, which is generally interpreted as the precursor of a recession.


The 11 main indices of the S & P sector closed in the red and first of all the value of utilities, which fell by 1.34%.

General Mills lost 5.6%, because Goldman Sachs became a seller on the stock.


European stock markets ended abruptly on Wednesday, worried about the economic impact of a protracted Sino-American trade war, and the tensions between Italy and the European Commission pushed investors to shun risky assets.

In Paris, the CAC 40 closed down 1.71% to 5.222.12 points, the worst closing since February 22nd. The British Footsie produced 1.15% and the German Dax 1.57%.

The EuroStoxx 50 index fell by 1.52%, the FTSEurofirst 300 of the 1.35% and the Stoxx 600 of the 1.43%, the lowest since the #. 39; 8 March.

(Daniel Amy Caren, Chuck Mikolajczak, Wilfrid Exbrayat for the French service)

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