- Stock market indices Closed Thursday after the contours of an American trade agreement which reduces the prices has become clear, which gives investors that more transactions can be concluded and a recession avoided.
The stock markets jumped Thursday after the White House shared the contours of a trade agreement with the United Kingdom. The first agreement of this type after President Donald Trump reached a break on reciprocal prices with the world a month ago, he gave Wall Street the hope that the United States will be able to continue trade negotiations and, hope it, avoid a recession.
The S&P 500 and the DOW increased by 0.6%, after increasing 1.3% earlier during the day. The Nasdaq, heavy in technology, increased by 1.1%.
Bitcoin reached $ 101,500, and crude oil prices climbed, while the price of gold has dropped while investors felt less security need.
THE agreement Stay in place a reference rate of 10% on British imports but reduces rights to cars, steel and aluminum. In return, the United Kingdom has promised to buy more American beef and ethanol and reduce import taxes over 2,500 American products.
“A trade agreement – even if it is an agreement in principle – did the markets seek to see,” said Chris Zaccarelli, director of investments for Northlight Asset Management, in a note.
Trump talked about the agreement, what he hinted would be the first of many. “You'd better go out and buy actions now,” he told journalists in the oval office, adding that the economy “will be like a rocket that goes up right away.”
He also teased the planned American-Chinese trade negotiations this weekendsaying that they expect them to be “substantial”. Among the prices, he said: “At the moment, you cannot increase. It is 145. So we know that it drops.”
Elsewhere, solid reports on the profits of a variety of companies have contributed to increasing the S&P 500. Tapestry, which owns the fashion brands coach, Kate Spade and Stuart Weitzman, increased by 3.7% after reporting sales and benefits better than expected thanks to the attraction of more young customers. Axon Enterprise, the manufacturer of the Taser, gained 14.1% on strong growth and a forecast of stimulated income.
Despite consumer and CEO's confidence, the economy has so far been resilient, with 177,000 jobs added last month, when prices were announced, going from stable and unemployment requests.
However, car manufacturers have issued a warning through the American Automotive Policy Council (AAPC), which represents Ford Motor Company, General Motors and Stellantis. In a press release, the chairman of the council noted that the American automotive industry remains “very integrated in Canada and Mexico; the same is not true for the United States and the United Kingdom”.
“We are disappointed that the administration prioritized the United Kingdom before our North American partners,” said Matt Blunt. “Under this agreement, it will now be cheaper to import a British vehicle with very little American content than a vehicle in accordance with the USMCA in Mexico or Canada which is half American.”
Blunt said it injured American car manufacturers, suppliers and car workers.
“We hope that this preferential access for British vehicles on North Americans does not establish a precedent for future negotiations with Asian and European competitors,” said Blunt.
This story was initially presented on Fortune.com
