By Rodrigo Campos
NEW YORK (Reuters) – Global actions were little replaced Monday, as optimism of China’s trade knowledge and hopes for more stimulus in the United States were offset by nervousness from tensions between Washington and Beijing.
Technology stocks fell after a series of recent gains, while crude oil costs increased.
Industrial production in China is returning to pre-registered levels before the coronavirus pandemic closed massive portions of the economy, driven by repressed demand, government stimulus, and bizarrely resilient exports.
On Wall Street, Dow industrialists peaked more than five months, but the Nasdaq fell 1.5% after reaching an all-time high last week.
Tensions between the U.S. and China ahead of industry talks scheduled for this weekend to review an agreement signed in January have been attributed to a lack of market direction.
Discussions in Washington about a U.S. fiscal stimulus package. For companies affected by the pandemic, they have created greater uncertainty for investors. House of Commons president Nancy Pelosi and Treasury Secretary Steven Mnuchin said Sunday they are open to resume negotiations.
President Donald Trump has tried to take matters into his own hands by signing executive orders and memos aimed, among other things, at maintaining unemployment benefits. However, the figure he advanced is less than the benefit he had had made earlier in the fitness crisis.
The Dow Jones Industrial Average rose 357.96 points, or 1.3%, to 27791.44, the S-P 500 9.19 points, or 0.27%, to 3360.47 and the Nasdaq Composite fell 42.63 points, or 0.39%, to 10968.36.
“Part of the explanation for why the S-P 500 has been selected is that we’re starting to see some other price shift away from growth,” said Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago. “This has a tendency to slow down the S-P because it is governed by great technologies.”
The pan-European STOXX 600 index rose by 0.30% and MSCI’s overall percentage indicator rose by 0.15%.
Emerging market stocks lost by 0.26%. The largest MSCI index of Asia-Pacific outdoor stock Japan closed with a drop of 0.08%, while Japan’s Nikkei lost 0.39%.
Oil has risen, supported by data from Chinese factories, the development of energy demand and hopes for an agreement in the United States on an economic recovery more similar to coronaviruses.
“The oil complex relies heavily on this aid. We want others who can stimulate economic activity to stimulate demand,” said John Kilduff, a spouse of Again Capital in New York.
U.S. crude recently rose 2.06% to $42.07 a barrel and Brent rose 1.37% in the day.
Brent crude $44.99 consistent with barrel and WTI $41.94.
He faced a pair basket after posting his seventh direct weekly loss on Friday. Traders pointed to fiscal stimulus in the United States and tensions between the United States and China.
But the context will be bearish for the dollar.
“We, the basic environment that has supported the US dollar over the more than two years, is increasingly unfavorable,” said Shaun Osborne, Scotiabank’s leading foreign exchange strata in Toronto.
The index rose 0.181%, the euro dropped by 0.38% to $1.1741.
The Japanese yen weakened by 0.01% against the dollar to 105.95 per dollar, while the pound last remained at $1,3074, 0.18% more on the day.
“The long-term outlook remains right for the euro, so we’ll probably see other people shopping down,” said Ed Moya, OANDA’s senior market analyst in New York.
Treasury bond yields rose but remained close to lows.
“There is a growing popularity that the recovery has stalled,” said Jon Hill, interest rate strata at BMO Capital Markets in New York. “The question is, will this abandonment become a pause or a more concerned retreat?”
Last week, yields to five years fell to their lowest recorded point and 10-year benchmark yields fell to their lowest level since March because expansion considerations require shelter debt.
Treasury will record debt amounts of 3, 10 and 30 years this week.
10-year benchmarks last fell to 5/32 for a yield of 0.5788%, from 0.562% on Friday night.
The value of the 30-year bond last fell 21/32 for a return of 1.2544% from 1.229%.
Cash fell by 0.4% to $2,025.58 an ounce.
Trump signed executive orders banning Chinese social media platforms WeChat, owned by Chinese generation Tencent, and TikTok starting next month, and imposed sanctions on 11 Chinese and Hong Kong officials.
(Information through Rodrigo Campos; Additional information through Tom Wilson in London, Laura Sanicola, Gertrude Chavez-Dreyfuss and Karen Brettell in New York; Edited through Dan Grebler and Sonya Hepinstall)