Teller Report

Now you can see non-English news...

Wall Street takes a breather before Powell's speech

2019-08-20T20:52:58.720Z

Wall Street takes a breather before Powell's speech



New York (AFP)

Wall Street retreated Tuesday after a bullish session and before a long-awaited speech by US Federal Reserve (Fed) President Jerome Powell this weekend that could pave the way for further easing measures .

Its flagship index, the Dow Jones, lost 0.66%, to 25,962.44 points, after three sessions of increase.

The Nasdaq, with strong technological coloration, dropped 0.68% to 7,948.56 points.

The broad index S & P 500 finished at 2,900.51 points, down 0.79%.

The New York Stock Exchange ended higher on Monday thanks to a lull on the Sino-US trade front, the rise in bond market rates and hopes for economic support measures in Germany and China.

The Dow Jones had taken 0.96% and the Nasdaq 1.35%.

"After a rise like yesterday's, it's typical that the market is pausing," said Financial's Quincy Krosby.

"There is nothing dramatic down today, which is relatively measured," said Krosby.

Market participants are now turning their attention to the minutes of the Fed's latest monetary policy meeting on Wednesday and the last meeting of the European Central Bank (ECB) on Thursday.

Above all, they are waiting for a speech by Fed Chairman Jerome Powell, scheduled for Friday in Jackson Hole (Wyoming), to have new clues on US monetary policy.

The Fed may decide to lower its key rates before the end of the year, after having already dropped by a quarter of a percentage point at the end of July, for the first time since 2008.

A central bank's rate cut is generally seen as a stimulus to the economy, in anticipation of a slowdown in growth.

Last week, 10-year Treasury yields fell short of two-year bonds. This "inverse of the yield curve" is a statistical phenomenon which in the past has been the precursor of a recession.

US President Donald Trump has rejected any idea of ​​economic downturn Tuesday in front of journalists at the White House: "we are very far from a recession," he said.

In addition, the political situation in Italy was closely watched by market players while Prime Minister Giuseppe Conte resigned.

"When important events take place outside the United States, money flows to the bond market, pulling yields down," said Krosby.

The interest rate on 10-year US Treasury bills was in sharp decline, to 1.55% around 20:15 GMT.

© 2019 AFP

Source: france24

Similar news:

You may like

News/Politics 2019-08-20T20:52:58.720Z
News/Politics 2019-11-13T17:12:53.356Z
News/Politics 2019-12-11T17:01:12.820Z

Trends 24h

News/Politics 2020-01-19T10:52:00.667Z
News/Politics 2020-01-19T16:04:18.444Z

Latest

news 2020/01/20    

© Communities 2019 - Privacy