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Mixed sign on Wall Street: US will not eliminate tariffs on China

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Wall street It has moderated its profits and closed with a mixed sign after Bloomberg has published that the US will maintain the current tariffs on Chinese products until the November presidential elections, despite the fact that both nations will sign the so-called 'Phase One' trade agreement on Wednesday. The Dow jones has risen 0.11% driven by JPMorganbut has lost the level of 29,000 points after marking a historical intraday high in 29,054 integers. Together with this bank, other financial institutions such as Citi and Wells Fargo They were the first to publish their figures for the fourth quarter of 2019. The S&P 500 and the Nasdaq They have gone down very smoothly after their records on Monday.

The bank run by Jamie Dimon was the first to publish results and has risen 1.17% after convincing with them, since it has exceeded analyst expectations. In addition, its annual benefit of 36.4 billion dollars has been the largest ever published by an American bank.

In negative, Wells Fargo has fallen 5.4% after disappointing its figures, since its earnings have been a 55% lower to those of the same period of the previous year. Citigroup has risen 1.5% after announcing an increase in its profit until 4,980 million dollars. Together, the KBW Banks Index rebounds 0.8%. By last, Delta Airlines has risen 3.3% after exceeding forecasts.

Continuing with the results, the accounts are expected to continue showing a mediocre earnings balance. Experts believe that only in 2020 will we really see a vigorous rebound after a very sparse 2019 in terms of business benefits.

CHINA AND THE US STILL CLOSE

This Tuesday was also news China. US has removed Beijing from its blacklist of currency handlers. An announcement that takes place in a key week with the Asian giant already in Washington to seal the phase one trade agreement this Wednesday and that has caused a strong yuan rebound in the forex market.

Although from the South China Morning Post, they lower somewhat optimism and point to the commercial war "It is not over yet" and this pact is just "the first round of the game." For their part, the experts of the Swiss bank Julius Baer affirm that "the persistent geopolitical rivalry between the US and China prevents that the trade agreement significantly increases the feeling "of companies worldwide.

According to Bloomberg, the two sides have agreed that they will review the current tariffs on Chinese imports worth 360 billion dollars. ten months after signing the agreement. And any reduction thereof will depend on the degree of compliance of the Chinese Government. The market has moderated the increases after this news.

ECONOMY AND OTHER MARKETS

On an economic level, the Chinese exports and imports They have widely exceeded forecasts in the month of December. In the US, the Consumer Price Index (CPI) It rose 0.2% in December, to an annual rate of 2.3%, in line with the forecasts. In addition, the Underlying CPI It has closed 2020 at 2.3%, also as expected.

In other markets, oil West texas up 0.8%, to 58.58 dollars, while the ounce of gold It falls 0.2%, to $ 1,547. The geopolitical risk premium of crude oil has been relegated to the background and gold, considered the active refuge par excellence, has clearly turned down.

The geopolitical tension between Iran and the US has been relegated to the background after demolishing the Persian regime by mistake a plane 737 with 176 passengers, half of them Iranians. This is causing internal revolts in Tehran and other cities and has caused an internal crisis for the Ayatollah government.

For its part, the euro it depreciates 0.25% and changes to $ 1,1105. Finally, the profitability of 10-year American bond It remains at 1.84% and the 2-year bond at 1.58%.

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