Wall Street applauds the closing of the lull in trade tensions

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Wall Street on Monday welcomed the 90-day truce decreed by Washington and Beijing in their trade showdown, although this measure does not yet settle the substantive disagreements between the two capitals.

According to the final results at closing, Wall Street's flagship index, the Dow Jones Industrial Average, gained 1.13% to 25,826.43 points.

The Nasdaq index, with its strong technological color, appreciated by 1.51% at 7,441.51 points.

The broad S & P 500 index gained 1.09% to 2,790.37 points.

At the end of the G20 in Argentina, the US and Chinese leaders agreed for the first to suspend the imposition of new tariffs for nearly three months to encourage negotiations while the latter has committed to buy more products US.

"The commercial battle will be less at the forefront of investor concerns," responded Peter Cardillo of Spartan Capital, predicting "a possible leap in the indices by the end of the year."

Barometer of the state of relations between the two countries because of their importance in the Chinese market, multinationals Boeing and Caterpillar respectively gained 3.81% and 2.42%.

While the indices had a good session on Monday, they ended relatively far from the euphoria of the opening, the Dow took up to 1.73% in the first exchanges.

"Investors are watching the details behind this truce and realize that the two countries are still very far from a definitive agreement," said Maris Ogg of Tower Bridge Advisors.

– Apple, Microsoft, and Amazon –

"I do not know how they will be able to settle in the next 90 days what they have been unable to solve in the last 360 days," said Phil Davis of PSW Investments.

The session was also marked by the passing, in turn, of technology giants Microsoft (+ 1.08%), Amazon (+ 4.86%), and Apple (+ 3.49%), at the rank of the most expensive private company in the world.

After Microsoft delighted Apple this Friday for the first time in eight years, the apple brand took over Monday with the leap of its title, not without difficulty against the group of Jeff Bezos came to play the trouble -Party.

The bond market was also marked by Monday's interest rate on US debt at three years above the five-year debt rate for the first time since 2007, at 2.827% against 2.821%. % around 9:50 pm GMT, a phenomenon commonly called "inversely of the yield curve".

However, the markets are still monitoring the 10-year and two-year debt spreads, with the first-to-second spread traditionally a harbinger of recession in the United States.

Without having fully absorbed, the gap between the two rates is currently at its lowest since 2007.

Among other values ​​of the day, oil-related groups benefited from a jump in crude oil prices of more than two dollars: Chevron rose by 1.45%, ExxonMobil by 2.16%, ConocoPhillips by 4% , 43% and Schlumberger 2.66%.

The Russian and Saudi leaders renewed their G20 alliance to control the market, increasing the chances of a production reduction agreement by the Organization of the Petroleum Exporting Countries (OPEC) and its partners at a meeting in Beijing. Vienna Friday.

  1. Nasdaq


AFP