Wall Street Falls, Trade and Growth Worry By Reuters

         (Reuters) – The New York Stock Exchange fell sharply Friday with declines of more than 2% for the S & P 500 and the Nasdaq and nearly 3%, penalized by new doubts on the front of the trade as well as by the persistence of the fear of a recession of the American economy in more or less short term. Well oriented in the first exchanges, the Wall Street indexes are off again after the comments of Peter Navarro, the trade advisor of the White House. The latter told CNN that if the United States and China could not reach an agreement after their 90-day truce, US authorities would continue to raise tariffs on Chinese imports. This was enough to stop investors' appetite for risky assets, already reduced by worries about signs of reversal of US government bond yield curves. The Dow Jones yielded 558.72 points, or 2.24%, at 24,388.95. The broader S & P-500 lost 62.87 points, or 2.33%, to 2,633.08 points. It fell by 219.01 points (3.05%) to 6.969.25. Over the week, the Dow lost 4.5%, the S & P 4.6% and the Nasdaq 4.9%, the worst weekly performance for these three indices since March The 50-year moving average days of the S & P 500 has gone under that to 200 days, forming a "cross of death", a graphic figure that emerges when a short moving average falls to break a long moving average, down too. Historically, this signal indicates new losses coming for an index before a rebound. "Equities have continued to retreat in a context of renewed pessimism about the prospects for Sino-US trade talks and fears of slowing economic growth," said Mark Haefele, chief investment officer for UBS Global Wealth Management. VALUES The renewed tension on the trade front has once again penalized the technology sector and in particular Apple (NASDAQ :), which weighed all its weight on the indices by losing 3.57%. INDICATORS OF THE DAY On the economic side, employment growth slowed in November in the United States, and wage increases did not meet expectations, suggesting a slowdown in economic activity, calling for a moderation of the Federal Reserve next year in the tightening of its policy. The dollar lost some ground against a basket of reference currencies after the publication of this statistic. Financial markets now expect a single rate hike next year, compared with two a month ago, according to the CME Group's FedWatch barometer. The central bank is expected to raise rates for the fourth time this year following its monetary policy meeting on 18-19 December. THE SESSION IN EUROPE The European stock markets ended in a disorganized manner despite the support of the. In Paris, it ended up 0.68% to 4.813.13 points and in London, the Footsie took 1.1%. On the other hand, it gave way, weighed down by the fall of Fresenius (DE 🙂 SE (-17.71%) and its subsidiary Fresenius Medical Care (FMC) (-8.47%) after the lowering by the German group of health of its medium-term objectives. RATE Yield fell further to 2.85%, dropping to 17 basis points for the week to complete its fifth consecutive weekly decline. The President of the St. Louis Fed, James Bullard, said that recent market developments and the prospect of an increase in the fed funds target made it possible to reverse the yield curve before the end. of the month. James Bullard also reiterated that the US central bank should pause in its cycle of monetary tightening. OIL Oil prices ended up more than 2% on the New York Nymex market after OPEC agreed to reduce pumping. The Organization of the Petroleum Exporting Countries will reduce its production by 800,000 barrels per day (bpd) from January, while non-OPEC producers will reduce theirs by 400,000 bpd, the Iraqi Minister of Petroleum said on Friday. a two-day meeting of the cartel in Vienna. Saudi Arabia, the de facto leader of OPEC, was under heavy pressure from Donald Trump, who asked him to give a boost to the world economy by refraining from reducing supply. By raising prices, the decline in production will relieve Iran, the third producer of OPEC struck by new sanctions imposed by the United States. (Patrick Vignal for French service, with April Joyner in New York)

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