US and China are leading a long-term stalemate in their trade dispute-Morning Talk – Friday, May 24 - Market Talk | Alice Blue Blogs – Get Latest Stock Market updates from Our Experts in Online Trading Platform
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US and China are leading a long-term stalemate in their trade dispute-Morning Talk – Friday, May 24

US and China Trade War -Stocks fell sharply in a wide sell-off on Wall Street, which left the benchmark S & P 500 index on track for its third straight weekly loss and till late afternoon, the Dow Jones Industrial Average was more than 400 points below.

Traders demanded security in the Bond market, bond prices increased more. Which pulled the yield on the 10-year Treasury up to 2.31%, the lowest level in more than a year.

Washington and Beijing have increased their dispute on the business earlier this month. Because the stock market has been highly volatile. Now, both sides have broken the dialogue and are ready for a prolonged deadlock. Investors are worried that long-term business war can affect economic growth and corporate profit can be hurt.

The S & P 500 index dropped by 34.03 points or 1.2% to 2,822.24. The index was down 2.5% before the sales decreased. Dow closed at 286.14 points or 1.1%, 25,490.47. At worst, Dow dropped 448 points.

Nasdaq composite dropped by 122.56 points or 1.6% to 7,628.28. Russell 200 index of small company shares rose by 30.25 points or 2% to 1,501.38.

Asian and European markets also saw decline.

The United States and China concluded its 11th round of trade negotiations without any agreement at the beginning of this month. Instead, the U.S. Took steps to increase the duty on Chinese goods, which resulted in retaliation of China. Trade dispute increased after the proposed restrictions on technology sale by China to the United States, although it has temporarily returned.

China is looking for ways to respond and has reached for support from its neighbors in Russia and Asia. Both the US and China have given more information on continuing the business negotiations, but no one is determined. Many businessmen are frustrated with the uncertainty about when and how to resolve the business dispute.

This month, the market rally has been interrupted due to the resumption of business enmity this month, which erased the S & P 500 after a sharp decline of fourth quarter and reached a new height. So far, the index is down 4.2% in May, although it is still playing an increase of 12.6% for the year.

Business-sensitive technology stocks led the rise in the market on Thursday. Many technical companies do significant business in China, and the Trump administration has given a tough competition to the Chinese companies for their proposed restrictions on technology sales.

Banks also suffered huge losses in the sale as Bond Yield rapidly declined. Low yield means there is a low interest rate on the loan, which makes lending less profitable. JP Morgan dropped 2% and Bank of America slumped 2.6%.

Investors sent more shares to utilities and real estate companies Those areas are considered less risky, which makes traders more attractive when they are worried about instability and slowdown in economic development. EverSource Energy and SBA Communications, which owns the wireless communications tower, each received 1.5%.

There was nothing about selling on Wall Street on Thursday.

Traders started a bid of 12.8% more at L brands while blaming the first quarter earnings estimates of Wall Street, the owner of Victoria Secret and Bath & Body Works chain.

Natura, a Brazilian cosmetics manufacturer, announced that she is buying a $ 3.7 billion stock of beauty products company. This deal will build the beauty products of the world’s fourth largest group. Natura is also currently the owner of a retail store like The Body Shop.

In other commodities turnover, the wholesale gasoline slipped 3.9% on Thursday to $ 1.91 a gallon. Heat oil dropped 4.2% to $ 1.96 per gallon Natural gas increased by 1.4% to $ 2.58 per 1,000 cubic feet.

Gold gained 0.9% to $ 1,285.40 an ounce, silver rose by 1.1% to $ 14.61 an ounce and copper rose by 0.1% to $ 2.68 per pound.

The dollar fell to 110.49 yen from 109.49 Japanese yen on Wednesday. The Euro became stronger at $ 1.1160 to $ 1.1183.

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About Dwipen Gogoi

Dwipen Gogoi, MBA (IB and IT) and PGDFT from Pune. (Technical Analyst of AliceBlue) I am a You Tuber, Blogger and doing Technical Analysis last 10 years in Stock, Commodity and Forex Market. i am creating various trading strategies for day traders, swing traders, scalp traders.

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