Wall Street opens lower and the dollar climbs, return of aversion to risk

NEW YORK (Reuters) – the New York Stock Exchange opened lower Wednesday, overtaken by concerns on the trade front while better than expected indicators argue for a tightening of monetary policy by the Federal Reserve (Fed).

The Dow Jones index lost 206,52 points, or 0.82 percent, to 25.093,4 points. The Standard & Poor’s 500, a broader, down 0.79 percent to 2.817,47 points and the Nasdaq Composite yield 0.85% to 7.803,78 points.

The rise of the Turkish Lira, up 4.68 percent against the dollar, fails to assuage the concerns of investors on the conflict between the United States to the Turkey, both diplomatically and on the trade front.

In fact, the Turkey announced the doubling of tariffs on the import of several categories of American products including cars, liquor and tobacco. A decision that is in addition to the boycott of American electronic goods claimed Tuesday by the Turkish president Recep Tayyip Erdogan.

Investors are also concerned about trade tensions between the United States and China, which has filed a complaint with the Organization moondiale (WTO) about the surcharge imposed by Donald Trump on imported solar panels from China.

“The markets return to prudence. The Chinese complaint raises the commercial crisis at a higher level, which continues to weigh on markets such as this has been the case the past two months,”said Randy Frederick, responsible of the derivatives at Charles Schwab.

Manufacturers Boeing and Caterpillar, two of the values most affected by trade tensions, abandon respectively 1.66% and 2.82%.

The renewed risk aversion translates the decline in yields on Government bonds: that of the Treasuries to 10 years more than three loses base under 2.87%.

In foreign exchange, the dollar wins 0.23% against a basket of reference currency after have slightly increased its earnings thanks to rising stronger than expected last month retail sales in the United States, which reinforces the hypothesis of economic growth remained robust at the beginning of the third quarter.

Another source of satisfaction, growth in manufacturing activity in the New York region accelerated unexpectedly in August.

On his side, US productivity grew at its highest rate in more than three years in the second quarter, while industrial production rose slightly in July.


The prospects of a slowdown in global economic growth and the announcement by the American Petroleum Institute (API) of a surprise increase in stocks of crude in the United States weigh on crude prices.

Brent evolves around 72 dollars – and loses around 1.3% – while U.S. light crude leaves 1.51% under the $ 67. Investors will follow the weekly statistics from the American information agency on energy (EIA) at 14: 30 GMT.

The actions of the oil companies Exxon and Chevron respectively abandon 1.17% and 1.55%.

The Chinese groups quoted on Wall Street suffer: Alibaba down 3.04%, JD.com of 5.85% and Baidu of 2.67%. In addition to fears about global demand and persistent trade tensions, Tencent’s disappointing quarterly results.

Macy’s lost 9.73 percent on profit taking, despite the announcement of an unexpected rise in quarterly sales at comparable perimeter and beats the consensus for the third consecutive quarter thanks to the strong performance of its activities. The Group of department stores had earned more than 66% since the beginning of the year.

Competitors Kohls down 4.81%, JC Penney of 6.44% and 4.45% Nordstrom.

At the time of the opening, European stock exchanges are in the Red: the Stoxx 600 lost 1.11 percent and the CAC 40 in Paris 1.33%.