Wall Street strengthens at opening of China-US talks

Published on : 10/10/2019 – 16:15

New York (AFP)

The New York Stock Exchange, after hesitating to open, gained ground Thursday as trade talks between Americans and Chinese take over in Washington in the greatest uncertainty.

Its leading index, the Dow Jones Industrial Average, rose 0.62% to 26,509.21 points, around 13:55 GMT.

The Nasdaq, with strong technological color, gained 0.72%, at 7,960.95 points, and the broad index S & P 500 0.65%, at 2,938.51 points.

Wall Street had finished in the green on Wednesday, investors hoping again for a positive outcome to the new trading session: the Dow Jones Industrial gained 0.70% and the Nasdaq 1.02%.

Robert Lighthizer, US Trade Representative (USTR) and Chief Negotiator Liu He, Chinese Vice Premier, and Steven Mnuchin, US Treasury Secretary, met in Washington on Thursday.

But the most total uncertainty remains on the outcome of the negotiations, the subjects of litigation being numerous.

"The latest press reports offer diverging perspectives on the chances of an interim agreement," say analysts at Daiwa Capital Markets.

Some, for example, mention the lack of progress on the issue of technology transfers and state subsidies, others of potential US concessions on Huawei's sanctions or China's commitment to purchase agricultural products, they remind.

The indicators of the day were mixed.

Consumer prices in the United States remained stable in September, while analysts expected a slight increase, and remain up 1.7% over 12 months. Without energy and food prices, the index rose 0.1% over the month and was up 2.4% year-on-year.

This increase "could give the Federal Reserve a possible excuse not to lower rates" at the next meeting in late October, said Patrick O'Hare, Briefing.

Weekly claims for unemployment benefits, meanwhile, fell, to the surprise of analysts

In the bond market, the 10-year rate on the US debt rose to 1.628%, against 1.584% at the close on Wednesday.

© 2019 AFP