Wall Street was disappointed by Chinese representatives


The stock markets in New York were on a loss mid-way through the last session of the week on Friday. Trade tensions between China and the US emerged once again. This happened after Chinese representatives canceled a visit to American agricultural states, which was scheduled for next week. That caused early gains on Wall Street to reverse.

The leading Dow-Jones index was 0.4 percent lower at 26,979 points around 7:45 PM (Dutch time). The broad S&P 500 lost 0.4 percent to 2993 points and technology level indicator Nasdaq lost 0.9 percent to 8107 points.

Earlier Trump caused a positive mood on the stock markets. Talks between China and the US resumed this week. The aim is to continue negotiations at a high level at the beginning of October. As a sign of goodwill, Trump came up with an exception list for four hundred product types from China that are subject to import tariffs.

Investors also responded to the fact that China, following the example of the European Central Bank (ECB) and the US Federal Reserve, also lowered interest rates. This creates the impression that large central banks are ready to largely absorb the impact on the economy of the lengthy trade struggle between the US and China.

Construction and engineering company McDermott experienced a 27.5 percent price jump due to a bid for the petrochemical industry division. The offer depends on the division a price tag of 2.5 billion dollars. The day before, the company lost more than a quarter of its market value due to concerns about a possible bankruptcy.

General Motors (GM) lost 0.8 percent. The automaker is in the spotlight for the strike that started at GM this week. Trade union United Auto Workers speaks of progress in wage negotiations, but still sees many unresolved issues in the consultations.

Store chain J.C. Penney won 13 percent. The company is said to be discussing a restructuring of its debts. This would give the company more leeway in the run-up to the important holiday season.

The euro was worth $ 1.1015, compared to $ 1,1001 at the close of the European stock markets earlier in the day. The price of a barrel of American oil rose 0.6 percent to $ 58.50. Brent oil was 0.3 percent more expensive at $ 64.60 per barrel.

About the author

Nicholas de Kramer

Nicholas de Krammer, а self-taught economic analytic with heave mathematical background. Math behind the economics (and economics behind math) is the strong side of the author. Contact him at [email protected]

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