PARIS (Reuters) – The New York Stock Exchange opened on Wednesday with the continuation of tensions in the bonds against the backdrop of budgetary dead ends, fears about debt and uncertainties on American customs duties.
In the first exchanges, the Dow Jones index lost 365.24 points, or 0.86%, to 42,312.00 points.
Standard & Poor’s 500, wider, fell by 38.53 points, or 0.65%, to 5,901.93 points.
The Nasdaq Composite gives in 137.25 points, or 0.72%, to 19,005.46 points.
The 90-day truce on the “reciprocal” customs duties decided by the United States will expire for most countries on July 9 and no notable advance on the subject has for the moment been announced. Several officials of the American Federal Reserve (FED) said on Tuesday expect customs duties to cause prices, while the White House minimizes this risk.
On the budgetary situation in the United States, whose federal debt is now 36.200 billion dollars, Donald Trump has failed to convince the refractory Republicans on Tuesday to his project to follow him while non-partisan analysts believe that the president’s tax reduction plan could add between 3,000 and 5,000 billion dollars to the American debt.
The Rules Control Committee of the House of Representatives has scheduled an unusual hearing at 1 am (05:00 GMT) while the Republicans are trying to overcome their internal divisions.
“When customs duties and uncertainty reduce growth, other questions also arise on the way in which the American federal deficit will be affected by the economy,” notes Daniel Bergvall, responsible for economic forecasts at SEB.
These questions result in a lift of bond yields, the American ten years taking on Wednesday 6.2 base points, at 4.5426%.
In values, the distribution sector (-1.24%) suffers with the results of the day. Target fell by 5.26% after lowering its forecasting of annual sales against a degradation of consumer confidence and the decline in discretionary expenditure in a context of trade tensions.
The discount distributor TJX abandons 1.67% after its annual forecasts, while Lowe’s is just in balance despite the announcement of a less marked than expected decrease of its sales on a comparable perimeter in the first quarter.
Unitedhealth plunges 5.22% after information that the health conglomerate has secretly remunerated retirement homes so that they reduce the transfers of sick residents to hospital centers.
(Written by Claude Chendjou, edited by Kate Entringer)
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