On Wednesday, American stock index futures headed south because dismal data out of China affected market sentiment, while traders waited for more developments related to the US-China trade conflict…
S&P concludes session above 2,800
On Friday, the S&P 500 boasted solid gains, closing above a major level and neglecting data that indicated decelerating American economic as well as global surge as expectations of a US-China trade agreement kept risk appetite alive.
Eventually, the Dow Jones Industrial Average soared by nearly 0.43%. As for the S&P 500, it managed to gain by approximately 0.69%, concluding above 2,800 for the first time since November 8. Besides this, the Nasdaq Composite rallied by 0.83%.
The American economy kept demonstrating signs of deceleration.
As a matter of fact, in December, consumer spending in the United States, accounting for more than two-thirds of the country’s economic activity, decreased by 0.5%. As for February’s ISM manufacturing data, it confounded hopes for 55.5.
The dive in personal spending actually represented the most impressive slump since 2009.
The consumer consumption demonstrating considerable worries going into year-end turns out to be more than sufficient to keep the Federal Reserve on the sidelines for the time being.
The dismal data arose after the Chinese economy demonstrated a dive in factory activity for the third consecutive month. However, the tempo of the deceleration had speeded down, backing hopes a bottom was already forming.
Furthermore, sentiment on Wall Street was also backed by signs that Chinese and American negotiators are very close to coming to a compromise.
Larry Kudlow told that the agreements achieved the previous week show considerable progress on forced technology transfer, IP theft as well as cyber interference.
In addition to trade, the financial markets were also driven by an ascend in energy shares notwithstanding a dive in crude prices on signs of weakness in the Chinese economy.
On Wednesday, Italian stocks led losses in the European Union right after the country's deputy prime minister told that Rome considers breaking EU fiscal rules, thus masking early revenue powered by optimism around the US-China trade conflict…
On Tuesday, another US-China tariff conflict escalation put pressure on Asian stocks, although remarks from American leader that he expects trade talks to be successful backed market sentiment…
On Monday, gold declined notwithstanding a lower American currency because data underpinned hopes for a Fed interest rate lift…
On Friday, European stock indices fluctuated at the beginning of the trading session…
The Reserve Bank of New Zealand will hold a meeting at 00:00 MT time on August 9.