Wall Street higher due to trade optimism


The stock exchanges in New York are closed in green on Monday on the first trading day of the month of July, although the substantial price gains at the start of the session fell considerably. Wall Street investors responded positively after President Donald Trump and his Chinese counterpart Xi Jinping booked ground at the G20 summit in trade negotiations last weekend. The two economic superpowers decided to resume talks on a trade agreement.
The Dow-Jones index eventually ended up 0.4 percent higher at 26,717.43 points. The broad S&P 500 rose 0.8 percent to 2964.34 points and the Nasdaq technology fair won 1.1 percent to 8091.16 points.

Trump spoke of an “excellent encounter” with Xi. He promised not to add any new rates to the extensive list of taxes on Chinese products in the near future. The president also temporarily reversed the blockade of telecom giant Huawei, making it easier for American companies to do business with the Chinese concern.

Companies that are sensitive to the trade conflict were able to profit with pluses for, for example, technology group Apple and the manufacturer of electric cars Tesla up to 1.8 percent. The chip sector also did well with profits for companies such as Nvidia, Qualcomm, NXP Semiconductors, Advanced Micro Devices (AMD) and Micron Technology up to 3.9 percent.

In addition, the oil sector was in the spotlight. Oil cartel OPEC has agreed on an extension of the existing production restrictions for oil extraction by nine months. The price of a barrel of American oil climbed 1.1 percent to $ 59.11 and Brent oil became 0.6 percent more expensive at $ 65.12 per barrel. The large American oil and gas company ConocoPhillips advanced 2 percent, while the major oil service providers Halliburton and Transocean added up to 0.9 percent.

Furthermore, market researchers Markit and ISM announced that activity in the American industry slowed down in June compared to a month earlier. Building spending in the United States showed an unexpected decline in May.

The euro was worth $ 1.1286 against $ 1,1306 at the close of the stock market in Europe.

By: Leah Kunze

Leah Kunze just graduated MBA and is proud of it. She is interested in automotive industry and innovations. She well be glad to receive a mail to leah.kunze@economicinform.com

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