New York (AFP)

Wall Street progressed on Monday at the opening, driven by the rise in bond rates and the extension of the exemption period granted to the Chinese telecom giant Huawei to do business in the United States.

Its flagship index, the Dow Jones Industrial Average, rose 1.11% to 26,173.43 points, around 13:45 GMT.

The Nasdaq, with strong technological color, was up 1.51%, to 8.015,34 points, and the S & P500 took 1.19% to 2,923.06 points.

The New York Stock Exchange had experienced several hectic sessions last week: if the main indices had all ended in green Friday, the Dow had its heaviest fall of the year Wednesday (-3.05%), day a wave of panic briefly blew over the stock market.

The interest rate on 10-year US Treasury bills then temporarily fell below that of two-year bills, a phenomenon known as "inversion of the yield curve" and generally regarded as a leading indicator of recession.

On Monday, the ten-year bond rate was up sharply to 1.61%, while the two-year bond rate was 1.52%.

"The gap between 2-year and 10-year returns is not huge, but some observers give it a lot of importance as the curve reversed briefly last week, raising fears of a recession, "said Patrick O'Hare of Briefing.

In addition, the markets welcomed the new three-month respite granted by Washington to Huawei and some of its US customers, perceived as a respite in the trade war between China and the United States.

The continuation of exemptions for an additional 90 days "is intended to give consumers across America the time needed to find suppliers other than Huawei, because of the permanent threat (that it represents) to national security and foreign policy, "said the Ministry of Commerce in a statement.

The Trump administration had blacklisted Huawei in May, accusing the group of working with the Chinese authorities, but had already granted exemptions for an initial 90-day period.

"Several US telcos are + addicted to Huawei, a 90-day reprieve seemed appropriate," said National's Art Hogan.

On Sunday, Donald Trump's chief economic advisor, Larry Kudlow, assured that Washington and Beijing were actively trying to get negotiations back on track to end their trade war.

Investors also expect additional support measures to the economy, particularly in Germany, where a recession was described as "possible" in the third quarter by the Bundesbank.

© 2019 AFP