(New York) The New York Stock Exchange ended lower on Tuesday, hurt by rising rates and poor indicators in China and Europe, in a market that was sluggish after a holiday weekend in the United States.
The Dow Jones lost 0.56%, the NASDAQ dropped 0.08% and the broader S
Waking up from a three-day weekend (the markets were closed on Monday due to a public holiday), investors took a dim view of the day’s macroeconomic figures, which came from abroad.
In China, the Caixin activity indicator in services faltered in August. Although it still reflects expanding activity (51.8 points when any figure above 50 indicates growth), it came in well below expectations and at its lowest since December.
As for the euro zone, it recorded a fourth consecutive decline in the PMI composite activity index (all sectors combined), at its lowest for 33 months, i.e. spring 2020, in the first months of the COVID-19 pandemic. .
The shortness of breath is spreading to most countries in the zone, with a particular mention for Germany.
At the same time, traders have been alert to the fresh surge in oil prices, which rose to levels not seen since November.
This surge supported bond yields, which rose significantly despite no new major US indicator being published on Tuesday. The yield on 10-year US government bonds was 4.26%, down from 4.17% at the close on Friday.
This tension reflects the fears of some brokers that inflation will raise its head and thus encourage the American central bank (Fed) to tighten its monetary policy again. Energy prices are, in fact, a major component of the consumer price index.
“That was the catalyst for the little pullback” in stocks on Tuesday, said Edward Jones’ Angelo Kourkafas, who some investors took advantage of to take some profits.
Additionally, September is traditionally the worst month for equities, prompting brokers to hold back.
The analyst nevertheless points out that the Fed is mainly interested in so-called underlying inflation, that is to say stripped of its most volatile elements, namely energy and food, and should therefore grant less important than the market to this acceleration in the price of black gold.
The trend remains for a slowdown in underlying inflation and a soft landing for the American economy, insists Angelo Kourkafas, for whom “the equity market trend remains upwards”.
On the side, unsurprisingly, oil stocks have benefited from the surge in crude oil, like ConocoPhillips (0.56%) or Chevron (1.31%).
Tesla (4.69%) put the foot down thanks to the announcement of an increase in its vehicle deliveries in China, in a context of intense competition.
United suffered (-2.51%) after the brief suspension, midday Tuesday, of all takeoffs of the company’s aircraft in the United States due to a “widespread technological problem”, without further details .
Manchester United, listed in New York, plunged (-18.22%), weighed down by information from the British daily Daily Mail, according to which the Glazer family, majority shareholder of the club, would be preparing to withdraw ManU from the sale, judging the offers submitted so far to be too low.
Asset manager Blackstone (3.59%) and accommodation booking platform Airbnb (7.23%) benefited from their entry into the S
Warner Bros. Discovery rose (0.69%) after revising its forecasts, linked to the strike by screenwriters and actors in Hollywood.
While the New York-based group expects to see its operating profit cut by $300 million to $500 million for its entire financial year, it also anticipates greater available cash, due to lower spending on the production of its content, which appealed to the market.
The Toronto Stock Exchange closed lower on Tuesday as investors braced for Wednesday’s Bank of Canada decision on its key interest rate.
The composite index S
In the currency market, the Canadian dollar traded at an average price of 73.38 US cents, down from 73.64 US cents on Friday.
On the New York Commodities Exchange, crude oil prices rose US$1.14 to US$86.69 a barrel, while natural gas fell US$18 cents to US$2.58 million BTUs.
The price of gold cleared US$14.50 to US$1952.60 per ounce and copper depreciated less than US$1 cent to US$3.85 per pound.
