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US stocks fell on Thursday as Wall Street geared up for an escalation of the US-China trade dispute, with the two sides threatening each other with respect to tariffs, as trade talks resume Thursday after midday.
Shortly after the opening bell, the Dow Jones Industrial Average was down more than 400 points, but early in the afternoon, major indices had largely canceled the loss.
China has threatened to retaliate against the United States if President Trump follows his plan for a sharp increase in tariffs against the world's second-largest economy.
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The Beijing threat responds to Trump's decision, announced this weekend, to slap an additional 25 percent tariff on Chinese goods worth $ 325 billion. The latter should come into effect on Friday at 12:01 pm.
The Chinese Ministry of Commerce said on its website Thursday that "the Chinese side deeply regrets that if the US tariff measures are implemented, China will have to take the necessary countermeasures," according to Reuters.
The Wall Street Journal reported that Trump and his Vice President Mike Pence had commented on Beijing this week: the Fed should lower interest rates, a sign that the White House is worried about the US economy and is therefore ready to make concessions.
Mei Xinyu, an analyst at a China Ministry of Commerce affiliate, said, "Why would you constantly ask the Fed to lower rates if your economy does not weaken," according to the Journal.
| Teleprinter | security | Latest | Change | % Chg |
|---|---|---|---|---|
| I: DJI | DOW JONES MEANS | 25769.79 | -197.54 | -0.76% |
| SP500 | S & P 500 | 2857.06 | -22.36 | -0.78% |
| I: COMP | COMPOUND INDEX NASDAQ | 7873.283788 | -70.04 | -0.88% |
Trade tensions are weighing on the markets. The S & P 500 and Nasdaq are already on their way to their worst week of 2019, especially since the week ending December 21, when they fell more than 7%.
The Dow Jones Industrial Average records its biggest weekly since March 8. However, if the Dow Jones index drops more than 49 points on Thursday, the first-order stocks index will also experience its worst week since December 21, 2019.
The S & P 500 and Nasdaq are about to suffer a fourth day of losses, which would be the longest losing streak in two months since the five-day loss ended March 8.
Chevron's shares rose after refusing Thursday to constitute a counter-offer for Anadarko Petroleum, the biggest producer in the Permian Basin, which has announced its intention to accept an offer from Occidental Petroleum, which is expected to be held in April. she would deem superior to Chevron's offer.
Crude oil prices dropped to $ 61.38 a barrel.
The US trade deficit with China reached its lowest level in five years in March – the lowest since March 2014 – falling from $ 24.8 billion in February to $ 20.7 billion.
The 10-year US Treasury yield fell to 2.44%.
| Teleprinter | security | Latest | Change | % Chg |
|---|---|---|---|---|
| CLC | CHEVRON CORP. | 120.52 | +3.02 | + 2.57% |
| OXY | WESTERN OIL SOCIETY | 56.52 | -3.69 | -6.13% |
| APC | ANADARKO PETROLEUM CORP. | 73.44 | -2.42 | -3.18% |
Concerns about the downward spiral of equity may be unjustified.
"Even a bull market is not always going in the same direction, and even this year, we have already experienced such a decline," said Mike Loewengart, vice president of investment strategies at E * TRADE Financial.
"Bears will always have something to crack, this week it's a business, and when we think about the uncertainty in this regard, the low we're seeing is really not that important. the situation could get worse, but if you look at the remarkable trajectory of the market so far this year, this week's drops are a minor downturn at this point. "
The current decline in the stock market could be an opportunity for investors, according to an expert.
"Many investors were waiting for a withdrawal to deploy capital that was also delayed by the rebound in the first quarter of 2019," said Jamie Cox, Managing Partner of Harris Financial Group. "Now you have your chance Nobody really knows what the business situation will be, but everyone should be able to understand that if you like Microsoft at $ 130, you should like it at $ 125."
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The Shanghai Composite of China closed down 1.48%, the Hang Seng by 2.39% and the Nikkei 225 from Japan by 0.93%.
The British FTSE 100 fell by 0.39%, the French CAC 40 by 1.32% and the German DAX by 0.95%.
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