On Wall Street without Zmain. Investors hold their breath from US-China talks

The Friday session at Wall Street ended with light declines of most main indexes, because investors carefully approach the trade talks planned for the weekend between the United States and China. It was a bit optimistic after the USA Thursday's trade agreement with Great Britain.

Dow Jones Industrial at the closure fell by 0.29 percent, to 41,249.38 points S&P 500 at the end of the day fell by 0.07 percent and amounted to 5,659.91 points Nasdaq Composite has not changed and amounted to 17,928.92 points. The index of companies with the average capitalization of Russell 2000 drops by 0.16 percent. and is 2,023.07 points The VIX index drops by 2.58 percent, to 21.90 points

– Many current increases can be clarified by a relief resulting from the pause in the duties of the trade agreement between the USA and Great Britain. Looking at recent reports, the feeling is that the worst is behind us – said Thomas Burnier from the Lazard Freres Gestion office.

He added that he is more optimistic about the prospects of European markets due to the improved macro image.

Optimism appeared on the markets after on Thursday US President Donald Trump presented an outline of a trade agreement with Great Britain – the first, concluded by the United States with the country whose import was covered by the new, American customs duties at the beginning of April.

Trump pointed out that the contract includes “billions of dollars of increased market access for American exports”, and Great Britain “will reduce or eliminate numerous non -disgust barriers that unjustly discriminated against American products.”

– Although US trade with Great Britain is small compared to trade with the United States neighboring countries, and especially in comparison with trade with China, this is an important test and a model of what can be achieved – indicates Chris Zaccarelli, investment director at Northlight Asset Management. – If the American administration is able to conclude further contracts, it will be a long way to heal the stock market, which has been strongly battered this year – he added.

Investors are now eagerly waiting for US-China trade negotiations, which are to start this weekend. President Donald Trump is determined to maintain the basic 10 % The stake of duties on imports from abroad, regardless of the commercial agreements concluded – said on Friday the spokeswoman for the White House Karoline Leavitt. She also declared that Trump would not reduce tariffs to Chinese products without concessions from Beijing.

Leavitt thus referred to a preliminary trade agreement between the USA and Great Britain, according to which the US will keep a 10 % basic duties rate for most British products.

“This 10 % base will continue to apply at the end when all other details of this contract are refined. The president has committed to maintain these 10 % base duty, not only for the United Kingdom, but also in commercial negotiations with all other countries,” said Leavitt.

The spokeswoman also referred to the commercial talks of American and Chinese delegations planned for Saturday and Sunday in the Swedery, the first since the start of the trading war between the powers. Commenting on Trump's earlier entry in social media, in which he suggested lowering customs duties for goods from China from 145 to 80 percent, Leavitt said that this is the number that Trump “just threw, and we'll see what would happen next.”

On the oil market, contracts for WTI on May increase by 1.79 percent. up to 60.97 USD for a barrel, and June Futures on Brentures grow by 1.62 percent. up to 63.86 USD/B. (PAP Biznes)

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