Major US stock indexes rose moderately, as the news that US President Donald Trump plans to postpone the introduction of tariffs on European cars outweighed weak economic data from the US and China.
Three sources told CNBC that the Trump administration would postpone the decision to impose a 25% duty on European-made cars for up to six months. This news, which was first reported by Bloomberg, led to an increase in car companies.
In addition, Finance Minister Stephen Mnuchin said that, most likely, he would soon go to China to continue trade negotiations.
These messages have allowed to reassure market participants, agitated by previously published weak economic data from the United States and China, which heightened concerns about the slowdown of the global economy.
A report by the Commerce Department showed that US retail sales unexpectedly fell in April, reflecting a sharp decline in car sales. According to the report, retail sales fell by 0.2% after rising 1.7% in March. Economists had expected sales to grow by 0.2%. With the exception of a sharp drop in car sales, retail sales in April rose by 0.1% after rising by 1.3% in March. It was expected that sales excluding cars will grow by 0.7%.
The Fed reported that industrial production in the United States fell by 0.5% in April after rising 0.2% in March, while economists had forecast that the figure would remain unchanged.
Almost all of the components of DOW finished trading in positive territory (27 out of 30). The growth leader was the shares of Visa Inc. (V; + 1.47%). Walmart Inc. shares turned out to be an outsider. (WMT; -0.40%).
Almost all sectors of the S & P recorded an increase. The greatest growth was shown by the technology sector (+ 1.5%). Only the utility sector decreased (-0.1%).
At the time of closing:
Dow 25,648.02 +115.97 +0.45%
S & P 500 2,850.96 +16.55 +0.58%
Nasdaq 100 7,822.15 +87.65 +1.13%
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.55% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2020 TeleTrade-DJ International Consulting Ltd
TeleTrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. TeleTrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
TeleTrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.55% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.