(News Bulletin 247) – After a three-day weekend to commemorate the abolition of slavery, Wall Street started the week at half mast on Tuesday: the Dow Jones dropped more than 0.7% to 34,054 points , while the Nasdaq Composite fell nearly 0.2% to 13,667 points.
Concerns for the global economy were reignited by China’s central bank’s decision to cut rates for the third time in a week, taking its prime lending rate to 3.55% and its five-plus rate to 4.2%.
These support measures, which came at a time when the recent Chinese indicators turned out to be disappointing, for once favored risk aversion on the markets by showing the Chinese authorities’ concern about the local economic situation.
In this context, the announcement of a 21.7% jump in building permits and a 5.2% increase in housing starts in the United States in May, to levels well above expectations , was not enough to reassure investors.
“We still expect a mild recession later this year to slow the recovery of the sector, but such strong data in May could mean that housing starts will end the year stronger than expected”, reacted Capital Economics.
On the stock front, Eli Lilly rose 0.9% following the acquisition of DICE, a platform for the development of new therapeutic candidates for chronic diseases, based on a purchase price of around 2 .4 billion dollars.
Above all, PayPal won 3.7% after an agreement to sell KKR up to 40 billion euros in loan receivables of European origin, which will allow the group of payment solutions to increase by one billion its share buybacks this year.
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