Wall street has cut its profits after the Fed's concern about the potential impact of the Chinese coronavirus about the growth of the Asian giant and, by extension, about the world economy. Fed President Jay Powell has acknowledged that "clearly" will have a short-term impact, although he added that "it is still soon" to assess its total impact.
The indexes have bounced during the session due to the increases in Manzana, which last night posted earnings above expectations thanks to the higher revenue in its history.
For now, business optimism wins the ground coronavirus Chinese, as happened on Tuesday, when New York indices rose 1% (Monday fell more than 1.5%). So far, the virus has caused the death of 132 people in China and has infected more than 6,000.
In the results chapter, General Electric It advances strongly after publishing its figures. In the Dow Jones, McDonald's He has won more than expected from the consensus of analysts, but his shares are flat.
For its part, Boeing 2% rebounds despite recognizing costs of almost 19,000 million dollars for the forced landing of 737 Max and announcing its first annual loss since 1997.
For now, the numbers invite optimism. 25% of S&P 500 companies have already paid accounts to the market and 72% have exceeded expectations, according to FactSet. Tonight, they will present Tesla, Facebook, and Microsoft.
FEDERAL RESERVE MEETING
The US Federal Reserve has kept interest at 1.5% -1.75% and rated current interest rates as "appropriate" in line with forecasts.
"The Committee judges that The current monetary policy stance is appropriate to support the sustained expansion of economic activity, the strong conditions of the labor market and the inflation that returns to the symmetric objective of 2%, "explained the central bank.
Further, the Fed has raised the IOER to 1.6% from 1.55%, in line with the forecasts. Experts had already anticipated this increase in the interest rate of excess reserves to adjust it to the effective interest rate of federal funds.
Finally, the organism "will continue to purchase treasury bills at least until the second quarter of 2020 to maintain ample balance of reserves in its balance sheet at the level that prevailed at the beginning of September, "when there were tensions in the US money market. This movement also It is in line with the planned, although many analysts consider these 'technical' purchases as a covert QE that is driving Wall Street.
POWELL, CONCERNED BY THE CORONAVIRUS
"Uncertainties about prospects persist, including those posed by the new coronavirus"said Jay Powell, president of the Fed, who nonetheless expects" moderate economic growth to continue. "There will clearly be implications, at least in the short term, for the chinese production; and I guess for some of his closest neighbors. We will have to see the effect of the coronavirus worldwide, "he added.
As a positive factor, Powell noted that "uncertainties about world trade have diminished"After the trade agreement between China and the US," which will undoubtedly "be positive for the economy,"
In other markets, oil West texas up 0.8%, to 53.51 dollars, after the falls of the last days by the forecast of a lower demand from China, the largest importer of oil in the world. And the ounce of gold falls 0.5%, to 1,568 dollars. In addition, the profitability of 10-year American bond goes up to 1.62% and the 2-year bond goes down to 1.43%. Finally, the euro 0.1% is depreciated and changed to $ 1.1010.
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