The US authorities filed a lawsuit against Facebook - what are the implications?
American equities slump as trade clashes resume
On Wednesday, US equities dived a bit because trade clashes between China and the United States resumed.
The S&P 500 inched down by 0.08% reaching 2,855.90, and the Dow slumped by 0.09% showing 25,607.01. As for the tech-heavy Nasdaq Composite, it went down by 0.10% trading at 7,875.92.
On Wednesday, China officially announced that it was fighting back the American trade duties, while on Tuesday the American government told that it’s going to slap a 25% duty on $16 billion of the opponent’s products on August 23, so the trade conflict between the two major economies of the world worsens. That’s the second set of duties against the Asian country for two months.
CVS Health appeared to be amidst the top performers after the morning bell, tacking on by up to 5.19% after its revenue beat forecasts. At the same time, Facebook managed to soar by 0.16%, while Bank of America edged up by approximately 0.18%.
In addition to this, Tesla was caught tumbling by nearly 2.14%. On Tuesday, the company inched up by about 11% right after Chief Executive Elon Musk told that he was considering taking the luxury car manufacturer private. As for Snap, it went down by 6.38% because the social media app posted an abrupt sink in daily active users. Walt Disney lost about 0.40% due to the fact its revenue came in lower than anticipated.
In the European bloc, equities were generally mixed. The DAX headed south by 0.18% in Germany. The CAC 40 went down by 0.34% in France. The FTSE 100 leapt by 0.64% in Great Britain. In addition to this, the Euro Stoxx 50 declined by about 0.46%. The IBEX 35 decreased by 0.65% in Spain.
Gold futures gained 0.01% trading at $1,218.40 a troy ounce. As for crude futures, they dipped by 1.49% being worth $68.14 a barrel.
Russian media companies are complaining that Youtube and Facebook block them. So sad. Now, what about the stock price?
Have you seen the Tesla stock price? But it has already dropped from that high... will it move up again?
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.