new York The dwindling prospect of a swift trade agreement with China scares US investors. The Dow Jones index lost one percent to 27,503 points in New York on Tuesday. The broader S & P 500 returned 0.7 percent to 3093 meters. The technology exchange Nasdaq noted 0.6 percent easier at 8521 posts. On Monday, Wall Street had already paused because of the announcement of punitive tariffs on aluminum and steel from Argentina and Brazil.
Triggering the recent sales was the statement by US President Donald Trump, he could imagine that a trade agreement with China will also be closed only after the US presidential election in November 2020. "The sudden new saber-rattling has taken the markets on the wrong foot," said investment strategist Michael Hewson from broker CMC Markets.
The hope that both sides will develop a so-called "phase one" trade agreement had led the US markets to peak levels last month. Recent news dampened expectations, fueling renewed concerns about a global slowdown and a decline in corporate earnings.
Investors wondered if it would even come to an agreement, said Randy Frederick broker Charles Schwab. In addition, a tightening of US punitive tariffs on Chinese goods is planned for 15 December. "These are on consumer goods that have not been affected so far."
For additional unrest caused Trump with new tirades against Europe, which fueled the fear of the flaring up of a trade dispute with the EU. The stumbling block is a digital tax decided by France that would hit US companies like Facebook, Apple and Amazon.
Single values in focus
Their papers were down to 1.8 percent weaker in New York. By contrast, Google shares gained almost 0.5 percent. The losers on Wall Street included chip companies like NVidia, whose business relies heavily on trade with China. The share fell just under 0.8 percent.
Shares in General Electric (GE) also fell short of 1.5 percent, following a fund investor's day spent in the health care industry. JPMorgan analyst Stephen Tusa was disappointed with GE's guidance for this business, which was among the lowest market expectations.
In the US bond market, trend-setting ten-year government bonds rose sharply by 30/32 points to 100 10/32 points, yielding 1.72 percent. The euro barely moved in US trade. At the close on Wall Street, the common currency cost $ 1.1081. The European Central Bank had previously set the reference price at 1.1071 (Monday: 1.1023) dollars. The dollar had cost 0.9032 (0.9071) euros.
More: Be it gold, bitcoins or sophisticated legal constructions: those looking for alternatives to the major capital markets face their own risks.
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