New York (AP) – US shares climb on Friday in another day maniac at Wall Street, while the drop in the value of the US dollar and other oscillations on the financial markets suggest that fear is still high escalation In President Donald Trump Trade war with China.
The S&P 500 was 1.7% higher in afternoon trading after following gains and losses because it closes a Chaotic and historical week full of Monstrous swings. The industrial average of Dow Jones has increased from an early loss of almost 340 points to a gain of 810 before settling in an increase of 606 points, or 1.5%, at 2:40 p.m. East time. Composite Nasdaq increased 1.8%.
Stocks kicked higher as the pressure was damaged a little In the American bond market. It is usually the most boring corner of Wall Street, but it flashed enough stress signals this week to demand the attention of Wall Street and the White House.
The yield on the 10 -year treasure exceeded 4.58% in the morning, against only 4.01% a week ago. This is a major decision for a market that generally measures percentage hundredths. Such jumps can increase rates for mortgages and other types of loans to American households and businesses, which would slow the economy.
But the yields of the Treasury withdrew as the afternoon progressed, and the 10-year yield regressed at 4.49%. It is always higher than a watch, but not also by also the eyes.
Several reasons could be the source of this week’s jump in the yields of the US Treasury. Investors outside the United States could sell its American obligations due to the trade war, and hedge funds could sell everything available in order to collect funds to cover other losses. More worrying, doubts can increase on the reputation of the United States as the safest place in the world to keep money.
The value of the US dollar also went up on Friday against everything, from the euro to the Japanese yen to the Canadian dollar.
It is even if goldAnother place where investors instinctively flocked when fear is high, increased to strengthen its safer reputation.
The trembling trading came after China has announced Friday, it increased its prices on American products to 125% in the last increase in the SET sector Trump’s escalation on imports from China.
The repeated American rate increases “on China has become a game of figures, which does not matter practical economic, and will become a joke in the history of the world economy,” said a spokesman for the Ministry of Finance in a statement announcing the new prices. “However, if the United States insists on continuing to harm China’s interests, China Counter-Conrete-et will fight until the end.”
The rise in tensions between the two largest economies in the world could cause generalized damage and a possible global recession, even after Trump recently announced a 90 -day break On some of its prices for other countries, with the exception of China.
APIDO AP: American actions shake while the value of the US dollar and government obligations flow as fears of the trade war increase
Actions are falling again while China retaliated with a 125% tax rate on American products. According to Seth Setel of the AP.
All the uncertainty caused by the trade war erodes confidence between American buyers, which could affect their expenses and translate into real damage to the economy, which entered this year at a solid pace.
A preliminary survey of the University of Michigan suggested that the feeling of American consumers falls even more strongly than economists waiting for it. “This decline was, as last month, omnipresent and unanimous through age, income, education, the geographic region and political affiliation,” according to the director of the investigation, Joanne Hsu.
“We remain in the first rounds of this world commercial regime change, and although the 90 -day break on reciprocal prices has temporarily reversed market sale, it extends uncertainty,” according to Darrell Cronk, president of Wells Fargo Investment Institute.
Market oscillations came after a stronger set than expected Profits Friday from some of the largest American banks, which traditionally contribute to launching each season of reports on profits.
Jpmorgan Chase, Morgan Stanley and Wells Fargo all brought back a stronger profit for the first three months of the year than analysts did not provide for it. JPMorgan Chase increased by 4.4%, Morgan Stanley added 1.7%and Wells Fargo lost 0.8%.
Another Inflation report also arrived better than expected. This could give the federal reserve more latitude to reduce interest rates if it feels the need to support the economy.
But the Friday report on inflation in large was behind, measuring the price levels of March. The concern is that inflation will increase in the coming months when Trump’s prices make their way through the economy. And that could bind the hands of the Fed.
The University of Michigan survey suggested that American consumers are preparing for an inflation of 6.7% in the coming year, against last month’s forecasts of 5.0%. It is the highest since 1981, and these expectations can create a feedback loop which only pushes inflation above.
In stock markets abroad, the indices were dispersed worldwide. Germany Dax lost 0.9%, but the FTSE 100 in London added 0.6% as the government reported the economyThe sixth largest in the world, experienced growth in February. The Nikkei 225 of Japan dropped by 3%, while Hang Seng of Hong Kong climbed 1.1%.
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The screenwriters of the AP Jiang Junzhe and Elaine Kurtenbach contributed.
