Wall street registers mixed sign after the sales on Thursday and before the renewed tension between the US and China. Furthermore, it is very important to highlight that the S&P 500 It has slowed down against the significant technical resistance presented by the main world indicator in the area of 2,950 to 3,000 points, although it still rises 3% so far this week.
The give and take between the two largest economies in the world has reached the stock market. The US Senate is pushing a law to exclude Chinese companies from US indexes. “The project is moving at great speed”, experts recognize.
For his part, China is double news today. First, it has promised to continue working for the implementation of its ‘phase one’ trade agreement with the US despite the fact that the tensions between both powers continue to be exacerbated by the coronavirus.
During the National People’s Congress (ANP) held by the Communist Party, the Chinese Prime Minister, Li Keqiang, has promised that “We will work with the US to implement the first phase of the economic and trade agreement.
Furthermore, due to the uncertainty caused by the Covid-19 emergency, the Chinese government has not issued a growth target for 2020, something that had not happened since 1990, “due to the great uncertainty regarding the Covid-19 pandemic and the global economic and commercial environment,” Li said.
THE US CONTINUES WITH ITS REOPENING
The full reopening of the United States remains unknown. “The future continues to present uncertainties and we can’t rule out a second wave of the virus“They recognize from Fundstrat Global Advisors.” We remain cautious and think that equities continue to offer an attractive return-risk equation, “they add.
In the US, the latest data does not especially call for optimism. According to CNBC, which in turn echoes a report by Johns Hopkins University, More than a third of the states that have reopened their doors have registered a spike in infections.
And Trump follows his own. The president of the USA has affirmed this Thursday that “we are not going to close the country again” if a second wave of the outbreak occurs. “We can put out fires, but we are not going to close the country again,” he said.
In other markets, the West Texas oil it cuts its rally and falls 3% to $ 32.92 after leaving China for its annual growth target. Besides, the ounce of gold rebounds 0.7% to $ 1,734, while the euro it depreciates 0.44% and changes to $ 1.0900. Finally, the profitability of 10-year American bond It falls slightly to 0.67%.
On a technical level, the S&P 500 has significant resistance in the “weekly bearish gap of 2,972 points“, an area that has been acting as resistance since the April highs. The main world indicator is trading at 2,949 points. Clearly exceeding 3,000 points would open the way for it to seek again its historical maximum for February, in 3,393.50 pointsBut not doing so may mean a new downward stretch in the short term.