Wall Street boosted by hope of a trade deal

The New York Stock Exchange ended in the green Wednesday, investors hoping again a positive outcome to the new session of trade negotiations between China and the United States which begins Thursday in Washington.

Its flagship index, the Dow Jones Industrial Average, gained 0.70% to 26,346.01 points.

The technology-rich Nasdaq gained 1.02% to 7,903.74 points and the broad S & P 500 index rose 0.91% to 2,919.40 points.

"The market these days is entirely concerned about the talks between the United States and China," said Karl Haeling of LBBW.

On the eve of new negotiations between Beijing and Washington, nothing official is filtering the agenda and even less the current state of negotiations.

But "everything seemed doomed to fail Tuesday" after the announcement of US sanctions against Chinese entities and officials suspected of participating in the "crackdown" against Uyghur Muslims in Xinjiang, he notes.

But "it seems now that the possibility of an agreement is back on the table," he adds.

Citing a Chinese official close to the negotiations, the Bloomberg news agency reported on Wednesday that Beijing remained open to a partial agreement if US President Donald Trump waived the additional tariffs he threatened to implement. here the end of the year.

Beijing would be ready in exchange for a few concessions like the large-scale resumption of orders for agricultural products.

Such an epilogue, however, would not solve substantive disputes like the problem of intellectual property.

The release during the meeting of the minutes of the last meeting of the US Central Bank (Fed) did not react much. Its members were especially "more worried" about trade tensions and geopolitical risks, with some fearing the likelihood of a "recession" in the medium term.

The president of the institution Jerome Powell however appeared serene Tuesday on the economic front considering that the situation of the employment and the inflation was "positive" and that the recent rate cuts helped the economic situation.

The minutes unveiled Tuesday "have not really brought any new clues as to whether we will have a further rate cut at the next meeting of the Fed in late October," says Haeling.

But "to the extent that the market puts about 80% on the probability of a further decline, its managers are better off sending signals now if they do not intend to do so," he added. there. Otherwise, they risk taking the market by surprise.

In the bond market, the 10-year rate on US debt rose to 20:15 GMT to 1.573% against 1.529% at the close on Tuesday.

Nasdaq