indices in this article
Profit-taking shaped trading on the US stock exchanges on Thursday. The course drivers of the vegan days lost strength. Hopes of progress in the search for a coronavirus vaccine have been dampened, as have expectations that the economy will rebound as the pandemic restrictions are eased.
Instead, the continued simmering tensions between the United States and China depressed sentiment. Late Wednesday, US President Trump again accused China of misinformation and propaganda attacks. In addition, the US Senate has passed a law that could make listing Chinese companies in the United States more difficult or even stop. It was of no use that the President’s economic adviser, Larry Kudlow, told the Washington Post that the China-US phase 1 trade deal was “intact” and there was no intention to renegotiate.
“All of the trade rhetoric is fueling uncertainty in a market that’s already plagued by uncertainty,” said Justin Onuekwusi of Legal & General Investment Management. That could lead to greater fluctuations.
In addition, new economic data showed that the US economy is not doing well. Last week, more people applied for unemployment benefits than expected for the first time, albeit less than last week. The Philadelphia Fed index was lower than expected in negative territory in May, even though it improved significantly compared to the previous month. The Markit purchasing manager indices for manufacturing and non-manufacturing recovered somewhat more in May than economists predicted, but still remained well below the expansion threshold.
Editorial staff finanzen.net / Dow Jones Newswires
Image sources: Robert Crum / Shutterstock.com, Maynard Case / Shutterstock.com
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