The stock markets in New York went further down in afternoon trading on Friday. The fear of further escalation of the trade war between the United States and China flared up again after President Donald Trump announced new import duties on Chinese goods on Thursday. At that time, the American stock exchanges also had a firm hit. Investors also processed the US job report and oil giants ExxonMobil and Chevron released quarterly figures.
The Dow-Jones index dropped 0.9 percent to 26,340 points around 7:30 PM (CET). The broader composite S&P 500 lost 1.1 percent on 2921 points. Nasdaq technology grant dropped 1.7 percent to 7972 points.
Trump wants to set the import tax of 10 percent on September 1 to $ 300 billion of Chinese products. According to the American president, this concerns products that were not previously taxed extra. China plans to take counter-measures if the United States continues with the new import tariffs. Stock market giant Apple surrendered 2.5 percent after an analyst report on the major financial impact of the trade dispute on the tech giant.
Toy manufacturer Hasbro (known for Nerf rifles and Transformers dolls, among others) and Barbie maker Mattel also suffered from the impending new import duties. Toys from China were spared for the time being in the trade war. Hasbro and Mattel fell 1.9 and 5.5 percent respectively.
Oil and gas company ExxonMobil (minus 1.4 percent) closed its second quarter with a lower profit and revenue. The weaker gas prices and higher investments in the oil and gas-rich area Permian Basin, among other things, played tricks on the company. His counterpart Chevron (minus 0.3 percent) also saw his turnover fall but also posted a higher result in the books, thanks in part to compensation for refraining from taking over Anadarko Petroleum.
Restaurant Brands, Burger King’s parent company, boosted sales and thus sales. The chain saw its profit fall because it put more money aside for taxes and the operating costs turned out to be higher. The share won 6.3 percent.
In addition, investors processed a number of macroeconomic publications, most notably the government’s monthly job report. The US economy added 164,000 jobs excluding agriculture in July, more or less in line with expectations. A month earlier, US employment improved by a revised 193,000 jobs.
The euro was worth $ 1.1110, compared to $ 1.1111 earlier in the day when the European stock markets closed. Oil prices rebounded after the heavy fall on Thursday. A barrel of American oil was 3.2 percent more expensive at $ 55.67. Brent oil rose 2.7 percent in price to $ 62.12 a barrel.
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]