WALL STREET COMPLETES BELOW
LOS ANGELES (Reuters) – The New York Stock Exchange closed lower on Wednesday, the fifth session of Standard & Poor's 500 decline, penalized by declining financial action against the will of the new Democratic-Democrat to tighten banking regulations.
The Dow Jones index lost 205.99 points, or 0.81%, to 25,080.50.
The higher the S & P-500, which gained 0.9% in the first few trades, fell 20.6 points, or 0.76%, to 2,701.58, dropping to 4% of the last five sessions.
The Nasdaq Composite fell 64.48 points, or 0.9%, to 7,136.39.
The Nasdaq also has five straight downs and the Dow Jones four.
Wednesday's trading started on a positive note, thanks to the recovery in oil prices and the latest US inflation figures, but the trend reversed in the middle of the trading session, with cautious recovery.
"A cocktail of uncertainties about global growth and international trade issues has led speculators to push the brakes," said Chad Morganlander, senior manager at Washington Crossing Advisors.
The CBOE volatility index, an indicator of short-term US stock volatility, hit its highest level in two weeks at 22.36.
The S & P Financials index fell 1.38 percent after Democrat MP Maxine Waters, who chairs the House Banking Committee, ruled out any loosening of regulation in the sector, according to CNBC.
Goldman Sachs lost 1.25%, JPMorgan Chase 2.06% and Travelers 2.97%, the largest decline in the Dow Jones index.
Apple fell 2.83 percent, its fifth consecutive decline as the group appeared unable to reverse the mistrust triggered by profit warnings from several of its vendors. In the low of the day, the title fell more than 20% from the record of October 3.
"Apple is really raising questions about technology and the – FAANG." Many investors have based their hopes on Apple's rise and that does not happen, "said Kim Forrest, senior analyst at Fort Pitt Capital Group.
In the wake of Apple, the high-tech index of Standard & Poor's fell 1.29%, Microsoft 1.42% and Adobe 1.47%.
The most spectacular fall of the day, however, is for the PG & E electricity company, which lost 21.79%. The group warned that ongoing fires in California, one of its largest markets, could result in "significant losses" exceeding the amounts covered by its insurers if some of its facilities were found to be at the source of the fire.
INDICATORS OF THE DAY
Consumer prices in the United States in October were the highest in nine months, 0.3% in a month and 2.5% in a year, driven mainly by gasoline and rents, but the statistics reflect a steady inflation, on which the Federal Reserve is based on gradually raising interest rates.
In the foreign exchange market, the day unfolded with information, sometimes contradictory, about Brexit. The announcement in London of the green light from the top cabinet ministers of Theresa May to approve the draft of the agreement with Brussels, the content of which was then revealed, allowed the British pound to close the day about 0.2% against the dollar and 0.1% against the euro.
The single currency also gained ground against the dollar: more than $ 1.13 at the time of Wall Street's close, showed a recovery of more than 0.8% compared to the nearly 17-month low hit on Tuesday at 1.1214 .
The dollar fell 0.26% against a basket of reference currencies, with no real surprises in consumer prices in the United States, confirming the scenario of a slow increase in inflation. .
As in the stock market, the trend was reversed during the session on the US government bond market, with returns returning to decline against Wall Street jitters.
Positive at the beginning of the day, thanks in part to consumer price data, yield in ten years and two years reached afternoon their lowest level in two weeks.
They were published at closing at 3,117% and 2,862%, respectively. The ten years are passed in session below 3.1%.
Oil prices have recovered part of the ground lost in previous sessions, thanks to the prospect of a reduction in output from OPEC and its allies.
Reuters reported that the Organization of the Petroleum Exporting Countries (OPEC) and its allies were discussing the possibility of a reduction in their global production of up to 1.4 million barrels per day, a figure higher than the one mentioned so far.
The December contract of the West Texas Intermediate (WTI), which chained 12 consecutive sessions of decline and hit the lowest level since November 2017, ended in a gain of 56 cents, or 1.01 %. at $ 56.25 a barrel.
The January deadline for Brent took 65 cents (+ 0.99%) to $ 66.23.
THE SESSION IN EUROPE
The main European stock markets ended in the red an indecisive session, in a scenario of economic and political uncertainties.
The CAC 40 lost 0.65% to 5,068.85 points after touching, at 5,026.22, its lowest level since October 30. Britain's Footsie rallied 0.28 percent and German Dax fell 0.52 percent.
The Milan Stock Exchange lost 0.78% against the backdrop of a confrontation between Rome and Brussels over the Italian government's fiscal policy, a context that weighed on bank stocks.
The EuroStoxx 50 index fell 0.6%, FTSEurofirst 300 0.65% and Stoxx 600 0.6%.
The main resource sector (-1.65%) was most affected by the overall decline after the announcement of less sustained growth than expected retail sales in China.
On the positive side, Iliad shined, gaining 9.64% following the quarterly results.
THINGS TO LOOK FOR THURSDAY:
In Europe, the next session should be animated by the latest developments on the key issue of Brexit and the Italian budget.
On Wall Street, it will be marked by a series of economic indicators and the quarterly results of Walmart, the world's largest retailer.
(Marc Angrand, with April Joyner and Sruthi Shankar)