Stock Markets Before the Opening on Tuesday
The New York Stock Exchange points to an opening down on Tuesday, weighted by profit-taking, after a start of the week and month very dynamic thanks to the pause in Sino-US commercial hostilities.
The Dow Jones Industrial Average, the leading index of the New York public prosecutor’s office, is expected down 0.48% to 25,722 points according to the futures contracts. The Nasdaq, with strong technological color, fell by 0.57% before the opening of the markets, to 7017.75 points. The S & P500, meanwhile, loses 0.37% to 2780.50 points.
The indices are “in profit-taking mode after” the leap of the previous day generated by the commercial truce, as the experts of Mirabaud Securities Geneva had anticipated.
The trade truce between China and the United States gives for the first time the hope of reaching new rules of trade between the two giants but it is necessary that “concrete progress” intervenes within three months, to elsewhere, US Finance Minister Steven Mnuchin said.
But, “we know, expectations are that investors will quickly move to other topics, including: the number of interest rate increases in the United States to wait in 2019, US growth, the evolution the price of a barrel of oil, the political situation in Italy or the future of Brexit “, supplemented Mirabaud’s experts.
Investors still have many issues ahead, starting with the Brexit, on which British MPs will begin to debate Tuesday, before a historic vote on December 11 that will determine the future of their country and that of their Prime Minister .
Regarding US monetary policy, investors have read the latest statements by US Federal Reserve Chairman Jerome Powell, who expressed doubts on Monday that the rise in wages of the less fortunate recently observed in the US United, can continue.
The Tokyo Stock Exchange lost more than 2% Tuesday at the close, returning after seven consecutive positive sessions against a backdrop of fears, the crisis of “yellow vests” in France uncertainties of the US monetary tightening.
The Nikkei strengthened its decline over the hours, while the Japanese currency, safe haven, strengthened: the dollar was thus worth 113.13 yen at the close of trade, against 113.48 yen Monday, and the euro fell to 128.71 yen, against 129 yen the day before, unfavorable movements to the Japanese exporters.
“The yen has appreciated because of geopolitical risks,” said AFP Hiroaki Hiwata, an analyst with Toyo Securities, referring to “the violent demonstrations in France,” whose images have traveled around the world.
The contractors also monitor US rates in the run-up to a meeting of the Central Bank. The Fed has raised interest rates three-quarters of a percentage point this year and the markets expect it to redo it again on December 18th.