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As of March, the US stock market has not seen such a sharp rise: thanks to the accommodative words of the Federal Reserve Chairman Jerome Powellwhich fueled speculation about a break in the rising interest rate cycle. By declaring rates close ("just below") to their "neutral" level, Powell has certainly made Trump companies and new traders happy. increased risk appetite recorded on the financial markets since yesterday. Investor enthusiasm is dampened by doubts over the fierce battle between Italy and the EU on public accounts and by the deterioration of trade relations between the United States and China in the perspective of the meeting between President Donald Trump and his Chinese counterpart Xi Jinping Saturday in Argentina. on the sidelines of the G20 summit.
The frontal clash between Rome and Brussels over the financial maneuver, rejected by Brussels and subject to a possible revision regarding the outlook for deficit and growth, did not leave Powell indifferent. In his speech to the New York Economic Club, he warned that at this point, Italy is one of the Possible "risk source" systemic because of the dispute with the European authorities. It is still possible to open an infringement procedure against the yellow-green government and the delicate situation "could trigger tension at any time."
Today, European stock markets are in any case in good condition after the jump on Wall Street. The US stock has recorded the best result in eight months of time, with the S & P 500 having gained 2.3% (in the best edition since March) and the Dow Jones which got a plus 2.5%. Better yet, he went to Nasdaq (+ 2.9%). Prices of stocks that had lost ground over the last six weeks, such as banks and technology, have risen further as short-term US government bond yields have changed slightly. Same for the dollar. Among the raw materials, oil is still in trouble. with WTI contracts that are down in the region of $ 50 a barrel.
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