Wall Street takes a halt on its bullish path at the start of a week that has brought unkind news for equity investors. On the one hand, latest measurements from China in economic policy they unleash the fear of new commercial tensions in the style of recent summers. On the other, some figures of real estate sector activity weaker than expected impede the verve of the last sessions.
One of the measures of Beijing that has caused the most shock among investors has been the ban on education companies raising capital in the market and give entry into their shareholding to foreign investors. A factor that has hit many listed companies in the sector in Hong Kong.
With this scenario, the New York indexes were unmarked from the advance of previous days, although the technology companies struggled to hold on to the green. 0.3% fell the Dow Jones, again below 35,000 points. The 0.1% decrease in S&P 500 they tested their price above 4,400 points. The Nasdaq, a 0.1% above balanced over 14,850 points.
This is how Eduardo Bolinches opens Wall Street
The measures announced by China had a significant impact on the markets of the United States because precisely this week a new high-level diplomatic round between both countries in Tianjin city. The goal was to move beyond the trade deals signed during Trump’s term.
As if that were not enough, the unexpected drop in the data for the sale of new-build homes in June – up to 676,000 operations – it gave arguments to investors who opted to sell. The Dallas Fed Manufacturing Business Index also contracted, to 27.3 points.
China and a break
One of China’s maneuvers impacted on Tencent Music Entertainment, the music subsidiary of Chinese group Tencent whose shares are traded on Wall Street as ADRs. These titles fell more than 1% after the Beijing order for renounce part of your rights catalog for business concentration issues.
Deeper, up to 6% was the retracement of Willis Towers Watson. In this case, the origin of the fall was located in the decision of the consulting firm in cancel its merger with professional services company Aon. The transaction announced at the beginning of March 2020 with a value of about 30,000 million dollars is now on paper.
Bitcoins and SPAC
For its part, Amazon rises about 1% after announcing its foray into the cryptocurrency sector. Although there are sources that point to the arrival of bitcoin to the electronic commerce giant, the question is much more incipient.
In the premieres chapter, Lucid Motors heads to Nasdaq through its absorption by the special purpose purchasing company (SPAC) Churchill Capital Corp IV. The $ 4.5 billion transaction was approved by the luxury car maker’s shareholders on Friday.