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US stocks closed on Friday because of possible stimulus measures in Europe and rising US bond yields fueled Wall Street's risk appetite.
Despite the day's gains, the three major US equity averages posted their third consecutive week of losses.
Markets expected the European Central Bank to lower rates in September and resume a bond buying program, according to Reuters. And add Mexico as the last country to have reduced interest rates overnight.
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The main averages of European equities closed up on expectations of monetary stimulus.
In the United States, industrial shares contributed to the progression of the winners. Deere & Co., which missed the quarterly earnings estimates, said it was reviewing its costs to reduce expenses and increase earnings. Investors rewarded the company by increasing its shares.
| Teleprinter | security | Latest | Change | % Chg |
|---|---|---|---|---|
| OF | DEERE & COMPANY | 149.23 | 5.52 | + 3.84% |
| GE | GENERAL COMPANY OF ELECTRICITY | 8.79 | 0.78 | + 9.74% |
| WAB | WABTEC | 66.62 | 4.31 | + 6.92% |
General Electric 's shares rose as Chief Executive Larry Culp bought nearly $ 2 million worth of stock a day after recording their largest percentage decline in a day in 11 years.
The shares of Wabtec, a conglomerate of railways and transport, have jumped.
Wall Street's risk climate drove up bond yields, boosting bank stocks. The 10-year US Treasury yield jumped to 1.55%. Treasury yields move in the opposite direction of their prices.
| Teleprinter | security | Latest | Change | % Chg |
|---|---|---|---|---|
| LAC | BANK OF AMERICA CORP. | 27.03 | 0.78 | + 2.97% |
| C | CITIGROUP INC. | 63.48 | +2.16 | + 3.52% |
| JPM | JP MORGAN CHASE & CO. | 107.72 | 2.52 | + 2.40% |
| WFC | WELLS FARGO & COMPANY | 44.39 | +1.01 | + 2.33% |
On the economic front on Friday, the Commerce Department said that US housing construction fell for a third consecutive month in July, due to a sharp decline in multi-family housing construction, but permits increased, raising optimism. Housing starts fell 4% to a seasonally adjusted annual rate of 1.191 million units last month.
Investors suffered the whiplash this week after the US yield curve – the difference between 10-year US Treasury yields and 2-year bonds – has been reversed for the first time since 2007. He has always been a clear predictor of the next recession.
Major US stock indexes have spent much of the day responding to large movements in US government bond yields, which dropped sharply in the beginning, fluctuated for much of the day, and then recovered some of the same. their decline in the middle of the afternoon.
Shares are down more than 2.4% this week and are on track for their third consecutive week of loss.
The US-China trade war hit US manufacturers and global financial markets with fears that the world's largest economy will slip into a recession. Yet most analysts expect the US economy to resist, at least in the coming months, at least in the coming months, thanks to strong consumer spending and resilient labor markets .
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The Japanese Nikkei rebounded 0.1% after the initial losses, Hang Seng Hongkong 0.9% and Shanghai Composite China 0.3%.
Associated Press contributed to this article.
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