Wall Street: Indices fall after four days of growth

Posted text: 12.07.2018 14:43

Wall Street fell amidst austerity after four days of growth as investors feared sharpening trade relations between the US and China and falling oil prices in the sector energy

Dow Jones slipped 219 points or 0.88% to 24,700 points, while the S & P 500 fell 0.71% to 2,774 points and the Nasdaq index of 0.55% at 7,716 points.

These clues are the result of a further tightening of trade relations between Washington and Beijing after the US Trade Representative, Robert Lighthizer, announced Tuesday that the government was planning to introduce additional customs duties of 200% in two months. The government of President Donald Trump is pushing into a trade war with China, which last week introduced 25 percent to 34 billion dollars in Chinese imports, to which Beijing responded to reciprocal measures.

Beijing also announced new customs it is unacceptable and will have to answer

The biggest losses of yesterday were industrial giants such as Boeing, 3M and Caterpillar, because the commercial war would be the most damaging for their business. Lower prices in the mining sector fell 1.7% as copper fell to the lowest level in a year as investor fears of global trade turmoil and slowing global economic growth . 19659005] Oil prices fell by almost 5%, which is why the energy sector fell by 2.2%.

The shares of the chip makers have also been under pressure, their revenues largely dependent on sales in the Chinese market

That's why a positive line on Wall Street has been cut, this which, thanks to investor optimism before the announcement of the quarterly results of US companies, lasted four days

to announce financial giants, such as JPMorgan Chase, Wells Fargo, and Citigroup.

Analysts say worries about trade relations between the world's largest economies could fall into the second p because investors could focus on the company's bottom line.

"The trade situation is worrying, but nothing will happen now, so history may fall into another plane, and investors are focusing more on current stories, such as corporate profits," says John Carey, portfolio manager at Amundi Pioneer Asset Management.

the second quarter could be considerably higher than at the same time last year, thanks to steady growth in the US and global economies and to tax changes in the United States.

According to a Reuters poll, corporate profits of the S & P 500 would increase in the second quarter 20.7% over the same period last year

Investors hope that companies will increase dividends or buyback programs in the market, which would encourage further price increases.

And on the euro stock markets The London FTSE index slipped 1.30% to 7.591 points, while the Frankfurt DAX sank 1.53% to 12.417 points and the Paris ACC 1.48% to 12.417 points. 5,353 points