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Wall Street continues to party: Nasdaq and S&P 500 start the week green

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After adding three consecutive weeks of earnings, Wall street maintains this good trend and this Monday has registered rises on the Nasdaq (+ 1.11%) and the S&P 500 (+ 0.27%). However, the ugly duckling of the day has been the Dow Jones, although the index losses have been 0.31%.

The good work of the US stock markets has led entities to revise their target prices upwards, as in the case of Goldman Sachs, which now expects the S&P 500 to touch 3,600 points by the end of the year. As Oppenheimer experts point out, "The S&P 500 has overcome a key resistance despite facing strong headwinds".

This Monday is not just any day on the New York Stock Exchange. And it is that investors have their sights set on the negotiations for a new stimulus package and on the new tensions with China. Democrats and Republicans have still not reached an agreement to irrigate the world's largest economy, which, in turn, has postponed the review of its trade agreement with the Asian giant until further notice, and without putting a date on the table.

The review of this pact was originally scheduled for last Saturday, according to sources cited by Reuters. These same sources assure that the delay has taken place due to conflicts between the two countries regarding programming. In addition, they also point out that The US wants to tighten the rope even more and allow time for more Chinese purchases of US exports to take place.

And while the review of the agreement has been on hold, both powers continue to poke at each other. The last move has been made by the United States, which has stepped up pressure on Huawei by expanding the scope of restrictions on the Asian company's access to the production and supply of microprocessors. In addition, it has added 38 other Huawei subsidiaries to the 'blacklist' of companies with restricted access to US technology and software.

MACROECONOMIC DATA

It remains to be seen how events develop, but in the meantime investors have known the August Empire State Manufacturing Survey. The index has suffered a significant drop in the eighth month of the year, going from 17.2 in July to 3.7 in August, something that according to Oxford Economics experts shows that "the reopening momentum cannot last forever" . Shipments increased modestly, new orders decreased, while employment increased slightly. Manufacturers remain optimistic about the short-term outlook, although somewhat less than in July.

According to Oxford Economics, "the recovery of the manufacturing industry will settle on a slower path than the immediate partial recovery that It has been greatly stimulated by reopening. The recent surge in coronavirus cases and the subsequent pause in reopening plans in many states highlights that the trajectory of the virus will dictate the strength of recovery from the pandemic shock. "

And is that the analysts of this firm believe that "soft demand, supply chain interruptions and great uncertainty will persistently limit the rebound in manufacturing until a health solution for the virus is found. Our baseline forecast predicts that manufacturing does not return to pre-virus activity levels until 2022, "they conclude.

OTHER MARKETS

In the raw materials market, West Texas barrel, a benchmark in the US, has traded up 1.9% at the close of the US market, to $ 42.81. On the other hand, in the foreign exchange market, the euro has appreciated 0.25% and is trading at 1.1871 dollars. In addition, in the debt market, the yield on the US 10-year bond has fallen to 0.68%.

Across the Atlantic, the Ibex has fallen by 0.9% at the beginning of the week pressured by its tourist values, specifically by Meliá and IAG, given the new restrictions imposed by Germany. Finally, in Asia the stock markets have closed in the green led by China and despite the historical contraction of Japan's GDP.

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