Wall Street, affected by Sino-US tensions ends down

New York – Wall Street ended lower Wednesday, affected by a new attack by the US administration against China on the trade front, reviving the specter of an economic war between the two countries.
  

According to final results at closing, its flagship index, the Dow Jones Industrial Average, dropped 0.88% to 24,700.45 points.

The Nasdaq, with a strong technological component, lost 0.55% to 7,716.61 points.

The expanded S & P 500 index dropped 0.71% to 2,774.02 points.

The US administration again struck Tuesday in the trade war with China by drawing up an additional list of Chinese products imported in the amount of $ 200 billion a year that they threaten to tax as soon as possible. September.

" The fear of the markets is that this trade war will continue and lead to global economic disruption ," said Ken Berman of Gorilla Trade.

Especially since Donald Trump could not stop there since the US president had said he could tax more than 200 billion dollars of additional imports.

In total, taxes could thus apply on more than 450 billion Chinese imports into the United States. The latter accounted for $ 505 billion in 2017 and the balance of trade between the two countries last year resulted in a $ 375 billion deficit at the expense of Washington.

Without renewed negotiations between the two countries, " another escalation of tensions seems inevitable ," said economists at Oxford Economics.

– Company Results –

Particularly sensitive to trade fears of war, the international Boeing and Caterpillar groups lost 1.89% and 3.18% respectively.

Chinese companies listed in the United States also suffered, the Alibaba group giving up 2.65% and JD.com 1.66%.

" It will be very interesting to observe the impact of these fears on business results this week ," noted Emily Roland, head of financial research at John Hanbad.

The quarterly results, whose optimistic outlook has sparked the markets' enthusiasm since the beginning of the week, will actually start on Friday with the bank's big-name US accounts.

In terms of indicators, US producer prices rose more than expected in June, driven mainly by the services sector with significant margins in retail sales of fuels, said Wednesday the Department of Labor.

The bond market eased: the yield on the 10-year US debt declined to 2.838%, against 2.849% on Tuesday at the close, and the 30-year bond fell to 2.937%, against 2.956% at the previous closing.

Among the other values ​​of the day, American Airlines has dropped significantly (-8.08% to 35.96 dollars) after a reduction in its revenue growth forecast by seat and miles traveled (TRASM), in because of weaknesses in the US domestic market. His competitor Delta (-1.50% to 49.84 dollars) must present its results Thursday.

The Fox group (-3.98% to 47.79 dollars) of the Murdoch family has increased on an offer of Comcast (+ 1.29% to 33.77 dollars) to buy the British television company Sky , a new episode of a battle on both sides of the Atlantic between giants of a sector in upheaval.

The pharmaceutical giant Pfizer fell (-0.59% to 37.21 dollars) after confirming Tuesday the postponement of the rise in prices of certain drugs, following a conversation of the CEO of the group with the American president, Donald Trump. The latter was indignant Monday on Twitter of these increases.

NYSE