End of the worst week of the year for US stocks

US stocks had the worst week of 2019, investors they worried about the escalation of the trade war of Donald Trump with China. Treasury bonds have increased while the yen has strengthened.

The S & P 500 fell for the fifth day in a row, Your biggest weekly loss since the December mbad sale. The trade crisis came back on the scene after Trump announced on Thursday that he would apply more tariffs on Chinese products, adding to fears that the dispute could derail the economy. World. China has promised to counter the threat. The president on Friday emphasized his rhetoric, saying that he could raise taxes to a "much higher figure". Equities were already under pressure after investors complained that the Fed's first 10-year rate cut was not accompanied by greater flexibility guarantees.

Ten-year Treasury bond yields have been maintained near the lowest level since 2016 after the US jobs report The month of July had little impact on the economic outlook and the way forward for the future interest rate policy. The dollar has fallen against most major currencies. West Texas crude recovered some of its 8% drop on Thursday, while copper fell to a two-year low in London.

"The announcement yesterday of escalating trade tensions is the main risk for the markets, now that the Fed is easing its monetary policy and it should be noted to what extent the government will raise tariffs that ultimately affect the consumer, who until now has been very difficult. "

Friday's employment report added another piece to an already big puzzle that includes the Fed, profits and trade. Although China has not yet given details of the measures it will take, the sudden escalation of the dispute has stirred the markets in a week already full of action between profits companies and meetings of the central bank. The events occur after the Fed chief has questioned a long cycle of interest rate cuts, angering the president and disappointing many investors.

In other places, most of the links from government European They are mounted with the common currency. The pound sterling rose after a failure in by-elections that reduced the majority of the House of Commons members of British Prime Minister Boris Johnson to one seat.