U.S. stock market swings higher despite rising U.S.-China tensions; oil up
By Jessica DiNapoli NEW YORK (Reuters) - U.S. stocks gyrated on Friday before ending slightly higher, as investors worried about increased China-U.S
By Jessica DiNapoli
NEW YORK (Reuters) - U.S. stocks gyrated on Friday before ending slightly higher, as investors worried about increased China-U.S. trade hostilities and disappointing retail sales figures, while signs of a pick-up in crude demand boosted oil prices.
The Trump administration on Friday moved to block global chip supplies to blacklisted telecoms equipment giant Huawei Technologies
The U.S. Commerce Department said retail sales, a significant portion of the economy, plunged 16.4% last month, the biggest decline since the government started tracking the figures in 1992. That data followed the historic loss of 20.5 million jobs last month.
“From bad to worse to worst, the U.S. economy is in the midst of an outright economic free-fall," said market analyst Christopher Vecchio at Dailyfx.com.
Oil prices rose to their highest levels since March
The Dow Jones Industrial Average <.DJI> rose 60.08 points, or 0.25%, to finish at 23,685.42, the S&P 500 <.SPX> gained 11.2 points, or 0.39%, to close at 2,863.7 and the Nasdaq Composite <.IXIC> added 70.84 points, or 0.79%, to end at 9,014.56.
"There’s so much uncertainty around what earnings will look like in 2021, 2022, and it’s difficult to value stocks," said Jeff Buchbinder, equity strategist for LPL Financial. "We’re a little bit cautious here and are not surprised about volatility in the last couple days."
A broad measure of European stocks <.STOXX> ended a bruising week roughly 4% lower, the biggest weekly fall since the mid-March rout as the coronavirus crisis spread worldwide.
MSCI's world stock index <.MIWD00000PUS> was down around 2.8% this week, its biggest weekly drop since March.
Analysts said the weekly decline was a natural correction after a rally since mid-March and also reflected growing concerns about rising U.S.-China tensions.
On Thursday, U.S. President Donald Trump signaled a further deterioration in his relationship with China over the novel coronavirus , saying he had no interest in speaking to President Xi Jinping and suggesting he could even cut ties with Beijing.
"There is no doubt that the optics around the trade/diplomacy backdrop have worsened in the last week and this has had a negative influence," said Chris Bailey, European strategist at Raymond James in London.
U.S. Federal Reserve Chair Jerome Powell has brushed off the notion that the Fed could push rates into negative territory after futures tied to Fed interest rate policy expectations began pricing a small chance of sub-zero U.S. rates within the next year.
Benchmark 10-year notes
The dollar index <=USD> rose 0.12%, with the euro
(Reporting by Jessica DiNapoli; Editing by Nick Zieminski, David Gregorio and Sonya Hepinstall)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.