The US stock markets save a slight plus in the weekend. But historically weak economic data have a negative impact on sentiment. But the oil price gives reason to hope for better times.
Increasing tensions in the US-China trade conflict and fear of the economic consequences of the coronavirus pandemic have somewhat dampened sentiment among US investors at the end of the week. He did it in New York Dow Jones nevertheless a slight increase of 0.3 percent to 23,685.42 points. The broader S&P 500 gained 0.4 percent to 2,863.70 points, the index of the technology exchange Nasdaq advanced 0.8 percent to 9,014.56 points.
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The indices were at a similarly low level as in mid-March, when the prices collapsed due to the coronavirus pandemic. “After the big rally (in April), it makes sense for stock prices to give way, better reflecting the weaker economic data we see everywhere,” said Ryan Detrick, market strategist at financial services provider LPL Financial. It was in Frankfurt am Main Dax 1.2 percent firmer at 10,465.17 points went out of trading – a weekly decline of four percent remains.
You can find a detailed description of trading on the Frankfurt floor in our stock exchange day.
The collapse in retail sales, which make an important contribution to economic performance in the USA, caused a stir. They fell 16.4 percent in April, the sharpest drop since data collection began in 1992. “From bad to worse to worst – the US economy is in the midst of a free fall,” said market analyst Christopher Vecchio of the Dailyfx information service. com. “Even if the yield curve signals something else – namely a probability of less than 20 percent for a recession within twelve months – it is obvious that the fear of a major economic decline is well founded.”
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A US decision, the Chinese network supplier and smartphone manufacturer, caused disillusionment Huawei cut off from delivering US chips. China responded, announcing a newspaper report that it would blacklist US companies. Companies that the report says could be affected by Chinese retaliation included, among others Apple, Cisco, Qualcomm or Boeing. The aircraft manufacturer’s shares fell 1.8 percent during the day, while Apple stocks fell 1.3 percent. The Qualcomm share certificates even temporarily lost more than five percent. The chipmaker is likely to suffer directly from the actions of the US government.
In total, eight of the eleven important industry indices in S&P fell. The property and utilities index saw the largest price falls. In contrast, the health, consumer goods and energy sectors went up. The latter benefited from the increase in Oil price: The price of US light oil rose 6.3 percent to $ 29.30 a barrel (159 liters). He benefited from signs of increasing demand.
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