Monday , November 29 2021

Increases in economic recession and "Chinese confusion" termination Dow Jones



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The main indices of Wall Street b & # 39; experience fall Tuesday more than 3%, As part of a downward trend attributed by analysts to a confusion about the present state & # 39; trade relations between the US and China and the EU worries from hidden economic downturn.

According to CNBC, industrial average & # 39; Dow Jones was decreasing 799.36 points (-3.1%) to close at & # 39; 25027.07, the worst day of the 10 & # 39; October. On the other hand, the S & P 500 index fell & # 39; 2700.06 7158.43 points and the Nasdaq, falling & # 39; equivalent to 3.2% and 3.8%.

Bribery between the US and China?

Having had a summit in Argentina with Chinese President Xi Jinping, the US president, Donald Trump, said he had agreed tariff reduction with & # 39; Beijing, but the fact is that those words they correspond b & # 39; subsequent statements by its main economic adviser, Larry Kudlow.

For some experts, the losses in the stock market indices is linked to & # 39; this uncertainty of trade negotiations. "The market wants news from concrete measures to reduce tariffs, not only statements"Brent Schutte, the greatest strategists & # 39; investment in Northwestern Mutual Wealth Management Company (NMWMC), told MarketWatch.

Augury of & # 39; crisis

On the other hand, the fact it happened on Monday analysts consider bad news: The yield curve bond of & # 39; USA was invested for the first time 2007

Specifically, the yield on the bonds of & # 39; three years exceeded the counterpart & # 39; His five years, indicating that investors should more confidence economic growth present to future, As the US Federal Reserve increases interest rates

Experts warn that it can & # 39; be the prelude to investment in the yield curve of & # 39; Bonds & # 39; two years compared with & # 39; those & # 39; decade, a phenomenon accurate prediction a & # 39; virtually all economic recessions over the past half century.

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