The Daily Times Newspaper

Wall Street Dips on Trade for Oil Price Concerns

708

The US stock exchanges took a step back Wednesday just like the indicators in Europe and Asia. Investors are worldwide worried about the flaring trade conflict between the United States and China. Oil prices also fell sharply.

 

The Dow-Jones index closed 0.9 percent lower at 24,700.45 points. The broad S & P 500 dropped 0.7 percent to 2774.02 points and technology exchange Nasdaq lost 0.6 percent to 7716.61 points.

Especially companies that are sensitive to the increasing trade-off between Washington and Beijing came under pressure. Aircraft manufacturer Boeing, car companies such as General Motors (GM) and Ford, and machine manufacturer Caterpillar recorded minutes to more than 3 percent.

The US government has issued a list of Chinese products for which it wants to increase import duties by 10 percent. In total, it is about 200 billion dollars worth of goods. Chip funds such as Intel, AMD and Micron Technology had to give up to almost 3 percent. The Chinese companies JD.com and Alibaba, which were listed in New York, also yielded a small 3 percent.

21st Century Fox (min 3.9%) was also in the news. The group of media mogul Rupert Murdoch has increased its bid for the British industry competitor Sky. The British are valued at 24.5 billion pounds. Fox, which already holds 39 percent of Sky, is in a takeover battle with cable giant Comcast (plus 1.3 percent). The Americans previously offered £ 22 billion for Sky.

A remarkable loser was Papa John’s Pizza. The restaurant chain yielded about 5 percent of market value after reports of racist statements by the company’s founder.

Oil prices showed the strongest decline on Wednesday after the news that the Libyan state oil company wants to reopen four export terminals. A barrel of American oil was 4.8 percent cheaper at $ 70.53. The price of Brent oil dropped 6.1 percent to $ 74.04 per barrel. Oilier Chevron and ExxonMobil gave respectively 3.2 and 1.3 percent of market value.

The euro was worth $ 1.1673, against $ 1.1719 at the end of the European stock markets earlier in the day.

Leave A Reply