Stocks lose their edge as China’s warning hits sentiment

Shares end the session without a major change after the warning from Beijing, who are willing to respond to any tariffs from the US keeps investors away from purchases.

Dow Jones Industrial Average remained with 0.01% profit, S&P 500 lost 0.16%, while Nasdaq Composite gained 0.26%.

China’s trade ministry said it would take “the necessary countermeasures” if the US continues its plan to raise tariffs this Friday, raising doubts about Trump’s comments that the Chinese delegation is ready to make a deal this week.

Trump commented on Twitter that Chinese negotiators “have informed” the White House that they “come to the US to make a deal.”

Analysts say trade rhetoric will often be tapped in the final stages of the negotiations, but at the end sober thinking will take precedence and a deal will be reached.

“We believe that a deal will soon be reached, even if tensions rise further over the next few days, and the US will temporarily raise tariffs,” said Pantheon Macroeconomics.

Shares that are affected by trading, such as Boeing and Caterpillar, have ended the mixed sessions, suggesting that market players are still not sure that the escalation in negotiations will be avoided.

Energy stocks ended around opening levels, even after oil prices rose.

Falling technology firms have also held up high for index gains, with blue chips continuing to sell after Intel said it expected low growth over the next three years. Shares fell 2.5%

 Trader Aleksandar Kumanov

Read more:
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance