The stock exchanges in New York are closed in green on Friday. The progress in the Sino-US trade negotiations in Beijing created a positive mood on the financial markets. In addition, investors on Wall Street were processing the state of emergency by President Donald Trump to build the border wall with Mexico.
The Dow-Jones index ended 1.7 percent higher at 25,883.25 points. The broad S & P 500 rose 1.1 percent to 2775.60 points and the technology exchange Nasdaq climbed 0.6 percent to 7472.40 points. On Monday, Wall Street is closed because of President’s Day.
According to the American trade representative Robert Lighthizer, progress has been made around several difficult issues. Chinese President Xi Jinping stressed that his country will work hard on an agreement that satisfies both parties. Trump said the talks were excellent and that the United States is closer than ever to a trade deal.
With the declaration of the state of emergency, Trump hopes to have sufficient money available for the construction of a wall. He wants to build it to stop illegal immigrants. Nancy Pelosi, the Democratic Speaker of the House of Representatives, said earlier that she is going to challenge Trump’s decision by all means, including in court, because there is no question of an emergency situation at the border.
The manufacturer of agricultural machinery Deere lost more than 2 percent. The quarterly earnings were below expectations due to the rise in raw material prices and concerns about the trade war among customers.
PepsiCo, known for Pepsi Cola and Lays chips, among other things, generated sales and profits in the past year, but also announced a reorganization. The company cuts into its workforce and closes factories. The share gained 3 percent. Toy company Mattel plummeted more than 18 percent after disappointing prospects.
It was also known that industrial production in the US in January had unexpectedly clearly declined, mainly due to lower production in the automotive industry. US consumer confidence is rising, according to the University of Michigan.
The euro was worth $ 1,1297, against $ 1.1270 in Europe. The price of a barrel of American oil rose 2.4 percent to 55.73 dollars. Brent oil climbed 2.7 percent to $ 66.34 per barrel.
Maurice Esma, a co-founder of EconomicInform is a freelance journalist with the expertise in international finance and corporate rights. The author can be reached by email [email protected]
