New York Stock Exchange slows as trade war between US and China

The main index of the New York Stock Exchange began to decline on the 29th, while the United States and China were increasingly concerned about trade negotiations.

At 9:42 am EST, the Dow Jones Industrial Average dropped 37.84 points, or 0.15%, to 25,328.59 on the New York Stock Exchange.

The Standard & Poor's 500 Index fell 7.58, or 0.28%, to 2,736.21, while the Nasdaq Composite Index, highly technology-driven, lost 7.66.91 percent, or 24.68% or 0.34%.

The mayor watched the news of the US-China trade war and the minutes of the November FOMC meeting that will be announced in the afternoon.

The index advanced strongly on Monday as President Jerome Powell said the benchmark interest rate was just below the neutral position.

The expectation of a slowdown in the rate of monetary tightening by the Fed is an impact.

That day, news of trade negotiations between the United States and China have once again attracted market attention.

Concerns were expressed as the prospects for trade negotiations between hot and cold water preceded the bilateral summit this weekend.

The United States Trade Representative Robert Litehei, the United States Trade Representative, today issued a statement in which he strongly criticized China's tariffs.

He added that China imposed a 40% tariff on cars made in the United States. He added: "We will look at all the ways to make car rates equal, according to the instructions of the president."

President Donald Trump said on his Twitter this morning that "billions of dollars have been invested in US Treasuries because of tariffs imposed on China," he said. "We still have a long way to go."

This summit is worrying that a breakthrough in resolving the trade war may not be possible.

Mr. Trump also withdrew the car tax bill, saying that the fact that the US did not impose high tariffs on imported cars had resulted in the restructuring of the factory. from GM in the United States.

There is no doubt that the mayor of Powell has reacted excessively to the market.

It is too early to predict that Powell will change the direction of monetary policy, still feeling that the US economy is strong.

Market participants are waiting for more information on future monetary policy at the November FOMC meeting, which will be announced this afternoon.

The economic indicators published before the opening of the day were mixed.

The Commerce Department reported that personal consumption expenditure (PCE) rose 0.6% in October compared to September. This is the biggest increase since last March.

The Wall Street Journal (WSJ) survey also exceeded the 0.4% increase.

In October, personal income (after tax) increased 0.5% mom. It has risen the most since last January.

Economists predict an increase of 0.4%.

The base price index of the ECP rose 0.1% month on month.

The WSJ index dropped 0.2%.

That was 0.2% in September.

The October PCE price index rose 1.8% year-over-year.

This is the lowest annual growth rate since last February.

Market expectations were lower than the 1.9% increase.

Compared with a 2.0% increase in September, it was 0.2 points lower.

The US Department of Labor announced last week that the number of unemployed claimants had increased from 10,000 to 234,000 (seasonally adjusted).

This is the highest since last May.

WSJ estimates were well over 220,000.

After opening, the interim index of home sales in October is released.

New York stock market badysts said concerns about tightening the Fed had diminished, but worries remained, such as the US-China trade war.

"The chairman of the Federal Reserve gave a thumbs up, but the market moved in the yards," said Mike O. Rourke, chief market strategist at Jones Trading. "It is true that the rise in interest rates of the Federal Reserve has been a factor of market instability," he said.

The main European stock markets have increased.

The pan-European index, the Stoxx 600 index, rose by 0.36%.

International oil prices rebounded.

WTI crude prices rose 1.47% to $ 51.03 per barrel, while Brent crude rose 1.23% to $ 59.48 per barrel.

According to the Chicago Mercantile Exchange (CME) Fed Watch, the US Federal Reserve (FF) interest rate futures market had a glimmer of 86.1% chance of a 25bp rate hike in December.

(Yonhap News)