Wall Street in a scattered order according to the measures of Trump against China

Wall Street finished in a disorganized manner on Friday after a meeting sawtooth, remaining cautious while the us president has announced a number of measures against China, without, however, raise a broader trade war.

read also : China is "on the brink of a new cold War" with the United States

the index feature, the Dow Jones Industrial Average declined 0.07% to 25.383,11 points, while the Nasdaq, in high coloring technology, has gained 1.29% to 9.489,87 points. The S&P 500, which represents 500 largest companies of Wall Street, has risen from 0.48% at 3.044,31 points. Donald Trump who promised Thursday to speak on China on Friday, without giving more details, the investors were in expectation of the possible sanctions that the u.s. president could impose.

speaking finally at the end of the meeting, the tenant of the White House has estimated that China's behaviour vis-à-vis Hong Kong was "a tragedy" for the world, and announced restrictions on entry in the u.s. for chinese students. It has also announced that it launched the process of elimination of the exemptions granted to Hong Kong in the context of the revocation of his special status.

read also : Trump restricts the entry of chinese students in the United States

"But we feared that it might raise an escalation of trade measures of retaliation between the two countries", points out Shawn Cruz, TD.

No new taxes customs

Donald Trump has not discussed any possible taxes and customs "for the moment, this should not bring us back as in 2018 and 2019, when the market was guided by the trade tensions between China and the United States", he adds. "What matters to investors remains the reopening of the economy."

This perspective has focused indices throughout the month of may: the Dow Jones has recorded a monthly increase of 4.3%, the Nasdaq up 6.8% and the S&P 500 of 4.5%. The indicators have continued to show the effects of the restrictions imposed to stop the spread of the disease Covid-19 on the economy, including a fall in household spending of 13.6% in April, but have also made encouraging signs.

If wages decreased, the income of households at the same time increased by 10.5%, thanks to the various assistance provided by the authorities. Result: the savings of Americans are at a historical high, with a household savings rate of 33%. This could result in a resumption of consumption once the economy will be re-opened.

Trump face-to-Twitter

Another positive element is that the consumer confidence measured by the University of Michigan leaves a slight increase in may. On the bond market, the rate on 10-year u.s. debt retreated, moving to 20.20 GMT to 0,6493% against 0,6900% on Thursday evening.

Among the values of the day, Twitter has lost the 1.99% as tensions with Donald Trump, who has struck a major blow on Thursday signed a decree aimed at limiting the judicial protection of social networks, is continuing. The social network is again directly intervened on a tweet from the us president on Friday, signalling it as a "glorification of violence", a message on the clashes of Minneapolis. The official account of the White House in the wake tweeted the same message.

also read : Donald Trump and Jack Dorsey, the boss of Twitter, between ambivalence and hatred

The car manufacturer General Motors was down 3%. He said on Thursday evening that the gradual recovery of production in its factories is going well and that he planned to speed up from Monday's activity, including on three sites producing SUV and three sites producing pick-up. The chain of stores wholesale Costo was down 0.35 percent after a sales growth of 9.6% over the three-month period ending on 5 April. The group, which has benefited at the beginning of the implementation of the containment measures of the rush of Americans to the massive purchase of toilet paper, water bottles or grocery products, has also pointed out that its sales had declined in the month of April.

1 commentaireMarco29le 30/05/2020 12:56

Compared to the commercial policy of Obama, that Trump is stupid vis-à-vis China. a
Has just been elected, he drops the treaty "Trans-Pacific Partnership" that Obama had prepared, leaving the countries of South-east asia and Japan distraught and under the influence of China. a
Fortunately, they have found Canada to try to pick up the pieces. a
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Trump quits, who will now be dominated by China ! a
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He wants to ban or closely monitor the chinese students it accused of spying (half are scientific studies), which is probably not false, but it is 15 years too late ; today China has millions of engineers and scientists. a
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He broke the conditions that had made Hong Kong a gigantic financial platform in the world. What are hong Kong people who are going to hurt.... a
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of course, there's the presidential election, which explains the aggressiveness, but would it be possible after repairing the breakage ?
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too much to spend $, each year, to their enormous military budget and to their OVERSEAS operations, they have sealed their competitiveness.
The enormity of their deficits and their debt (public, private, households, students) condemn them ineluctably to the first weakness. a
A chance that these last few years they have been saved, temporarily, with the oil and shale gas.

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