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Home / Business / Stocks remain under pressure from tensions between the US and China

Stocks remain under pressure from tensions between the US and China



US. Shares fell slightly on Wednesday morning after China condemned a US Senate resolution in Hong Kong to support human rights and threatened to lift tariffs if Washington and Beijing failed to negotiate a trade agreement October Federal Reserve meeting to gain further insight into its monetary policy, although Chairman Jerome Powell explained his thoughts on the economy in Congressional reports last week.

What are the main benchmarks?

The Dow Jones Industrial Average

DJIA, -0.34%

was down 77 points, down 27%, 0.3%, while the S & P 500 was down

SPX, -0.21%

lost about 3 points, 0.1%, lower at 3,117. The Nasdaq

COMP, -0.17%

which broke short over the neutral line, was less than one point lower at 8,570.

On Tuesday the Nasdaq Composite

COMP, -0.17%

gained 20.72 points, or 0.2%, to a record of 8,570.66, which was achieved for the third consecutive time. The Dow Jones Industrial Average

DJIA, -0.34%

fell 102.20 points, or 0.4%, closing at 27,934.02, while the S & P 500 Index

SPX, -0.21%

posted 1.85 points or 0.1% to end the session at 3.120,18.

Read: How can stocks recover when corporate earnings are unchanged? Thank the bond market, says the analyst

. What drives the market?

After the US Senate passed a bill to support human rights in Hong Kong late Tuesday after months of often violent civil unrest in the semi-autonomous Chinese city of China, Congress threatened "strong countermeasures" if the bill continues to pass.

The diplomatic spit could also affect trade talks between the US and China at risk of impasse and threatening to derail the Trump administration According to the Wall Street Journal, a temporary "Phase 1" pact is underway this year Appeal to former administrative officials to be planned.

Both sides remain disagreed on key issues – including Beijing's call for the abolition of tariffs and the US's existence of China's purchase of agricultural products – nearly six weeks after the White House closed on October 11 had announced "fundamental agreement".

At a Cabinet meeting on Tuesday, President Donald Trump said China must make a deal to prevent import tariffs from rising even further. New charges would come into effect on December 15, directly affecting American consumers.

"What we see on the market today is another reminder that tariffs are paramount," says JJ Kinahan, chief strategist at TD Ameritrade.

"You can get great results from two of the biggest retailers – Target and Lowes – but the most important thing seems to be when the headlines in the trade go south."

David Madden, market analyst at CMC Markets UK, I was confident that the talks will be resumed. "Beijing has a track record of holding out against Trump, so the deal will be tight in the short term," he said in a statement to customers.

In the meantime, Lao Brainard, governor of the Federal Reserve Board, said she supports a pause in interest rate policy following the three rate cuts since July as she expects the US economy to be able to shake off trade uncertainty and continue its moderate path of expansion until 2020.

The Fed will release the minutes of its October session at 14.00. Easter. Economists are looking for an idea of ​​how long the Fed break could last.

See: This could lead to a rise in stocks (Note: Not the Trade War or the Fed).

Which stocks are in focus?

Shares of Target Corp .

TGT, + 12.46%

hit a record high on Wednesday after the discounter posted higher-than-expected earnings and sales in the third quarter of the fiscal year and raised its full-year outlook.

Lowes Cos .

LOW, + 4.76%

Net income for the third quarter ended November 1, increased from $ 629 million, or 78 cents per share, to $ 1.05 billion, or $ 1.36 per share Share. The shares of the hardware retailer also reached a new high.

Bristol-Myers Squibb Co .

BMY, -1.23%

slipped in the morning after the drug company announced it was not targeting a trial of Opdivo plus Yervoy in treating patients undergoing melanoma treatment had classified.

The shares of AT & T

T, -3.57%

fell by about 3% on the second day in a row after reaching a long high on Monday. Analysts from KeyBanc warned of a "further deterioration" of the video.

Intelsat S.A .

I, + 17.55%

Equities have extended their rally following a sharp decline earlier this week following a downgrading of Raymond James. The stock still fell nearly 50% last week.

Apple

AAPL, -0.97%

was lower after it was announced that the company was building its new 3 million-square-foot campus in Austin, Texas for $ 1 billion will begin employing 5,000 people. President Trump will visit the company's production facility in Austin on Wednesday.

How are other markets traded?

United States. US Treasury yields fell against the 10-year US Treasury note given trading concerns

TMUBMUSD10Y, -1.49%

at 1.750%, compared to 1.785% on Tuesday.

Gold

GCZ19, -0.43%

slipped to a profit on Tuesday, down 0.4% at $ 1,468.80 an ounce on Comex.

Oil

CL00, + 3.11%

rebounded after sinking one day ago, rising 2.5% to 56.73 USD per barrel, after standing at the New York Mercantile Exchange 3.2 %, which was the lowest level in November.

The ICE US Dollar Index

DXY, + 0.12% ,

The Stoxx Europe 600, which was a basket of the Greenback's trading competitors, was virtually unchanged.

SXXP, -0.41%

were about one point or 0.4% lower.

In Asia, mixed stocks traded overnight on Wednesday with the Chinese CSI 300

000300, -0.99%

lose 1%, Japan's Nikkei 225

NIK, -0.62%

fall by 0.6% and Hong Kong's Hang Seng

HSI, -0.75%

minus 0.8%.

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