New York (AFP)
The New York Stock Exchange ended slightly higher on Tuesday after an indecisive session, investors positioning themselves before a possible decline in interest rates of the US Federal Reserve.
Wall Street's leading index, the Dow Jones Industrial Average, was up 0.13 percent to 27,110.80 points.
The Nasdaq, with strong technological color, took 0.40%, to 8,186.02 points and the expanded S & P 500 index rose 0.26% to 3,005.70 points.
"If the Fed does not lower its rates by 25 basis points (0.25 percentage points), the market will be in shock.The institution has sent very clear signals," said Maris Ogg of Tower Bridge Advisors .
According to the CME trader, however, the financial actors were expecting nearly 53% on unchanged rates at the end of the monetary policy meeting of the banking institution on Wednesday.
More than 90% of them were betting on a drop of about 0.25 point a week ago.
"The expectations of financial players have decreased in recent days," conceded Karl Haeling of LBBW, indicating that the probability of a sharp decline in rates by the end of the year, in addition to the possible decline of Wednesday had considerably diminished.
"The economic data is a little better than expected," Ogg said.
Industrial production in the United States accelerated in August, signing with + 0.6% its largest increase in a year that far exceeds analysts' expectations, according to the Fed figures released Tuesday.
A technical liquidity injunction from the New York Federal Reserve Bank on Tuesday was also able to influence the bets of some investors.
The New York Fed has intervened in the financial markets on repo transactions, for the first time in ten years, to keep short-term rates close to its target.
The New York institution has announced a second operation of Repo, which will take place in the night from Tuesday to Wednesday and will involve a cumulative amount of $ 75 billion.
In the bond market, the 10-year US debt rate stood at 1.807%, down from its previous day's close (1.847%).
© 2019 AFP