The stock markets in New York are facing a higher opening on Monday. The moderate tone of US President Donald Trump regarding the trade struggle with China is expected to provide some relief among investors. Before the weekend, Trump used threatening language in the direction of Beijing, which led to deep-red course signs in New York on Friday.
According to Trump, Beijing contacted the US and indicated that China wants to talk again. When asked about a possible postponement of further tariffs on Chinese products, Trump later said that “anything is possible”. Monday’s blissful words run counter to Trump’s statements. The Chinese Ministry of Foreign Affairs was unable to confirm on Monday that the telephone call to which Trump was referring had taken place.
Before the weekend, the president caused a shock wave in the financial markets. In a series of tweets, he announced a further increase in import tariffs. Trump did so out of anger at the import duties announced by China. Trump also said that it would be better for American companies to look for alternatives to production in China.
Principle agreement
In the meantime, Trump has already signed an agreement in principle with Japan. That country would have promised, among other things, to buy agricultural products from the US. Exactly what the agreements look like has not yet been announced.
In terms of companies, Amgen knows its eyes on itself. For 13.4 billion dollars, the pharmaceutical company takes over the worldwide rights of the psoriasis drug Otezla from biotechnologist Celgene. The deal in turn is part of the mega takeover of Celgene by Bristol-Myers Squibb. With the sale of the Otezla rights, Bristol-Myers Squibb hopes to get approval for the Celgene deal worth $ 74 billion.
Tesla is coming under increasing fire due to problems with its solar panels. Web store giant Amazon is now also complaining about the installations that could be a fire hazard. Earlier, the shopping giant Walmart accused the panel maker for that reason.
Investors also respond to better-than-expected figures on the number of orders for durable goods. Data on the housing market in large cities will follow later.
Wall Street closed the week off on Friday. The Dow-Jones index ended 2.4 percent lower at 25,628.90 points. The broad S&P 500 fell 2.6 percent to 2847.11 points and tech exchange Nasdaq lost 3 percent to 7751.77 points.
Lesley Woutersen, one of the co-founders of the EconomicInform gives away all of his free time to the project. He is interested in stock exchange and digital assets. Lesley can be reached by lesley.woutersen@economicinform.com.
