Wed. Dec 11th, 2019

Wall Street opens in red dragged by the decline in public bond performance

Wall Street opened this Wednesday in red, dragged by the fall in the profitability of 10-year Treasury bonds, a benchmark in the US, briefly below that of 2-year bonds, a movement in which some analysts They see a sign of recession.

Half an hour after the start of the session at the New York Stock Exchange, the Dow Jones yielded 1.41% or 371.36 points, up to 25,908.55, moderating a cut that minutes before reached 430 points.

The selective S&P 500 decreased 1.44% or 42.02 integers, standing at 2,884.30, while the composite index of the Nasdaq market, in which important technology firms are listed, was left 1.63% or 130 , 85 points, up to 8,885.51.

The New York parquet goes through another volatile week and this morning the indicators marked distance with the gains of the previous day, motivated by the delay in mid-December in the imposition of part of the tariffs on Chinese products by the White House.

This Wednesday, investors were once again looking at the public debt market, where the profitability of 10-year Treasury bonds was around 1,596%, while that of 2-year bonds at 1,593% after Invert your positions briefly.

The reversal of the yield curve of public bonds in the short and long term generates concern among investors, since the phenomenon has preceded several recessions and many consider it a sign that the economy is plummeting.

In addition, the yield of the 30-year bonds fell to historical lows and at this time it was 2,049%.

Thus, by sectors, the financial (-2.05%) was one of the biggest harmed and the main banking groups in the country were down: JPMorgan (-2.59%), Bank of America (-2.81%), Goldman Sachs (-2.80%) and Wells Fargo (-2.20%).

The energy sector (-2.73%) and the non-essential goods sector (-2%) also fell, while only green utilities (0.11%) were in green.

Among the 30 listed companies of the Dow Jones group in addition to Goldman and JPMorgan down ExxonMobil (-2.74%) and the industrial Caterpillar (-2.50%), 3M (-2.27%) and United Technologies (2, 35%)

On the other hand, the price of Texas intermediate oil (WTI) was cut by 3.57%, up to $ 55.06, discouraged by the latest macroeconomic data from Europe and China.

In other markets, gold, a safe value, rose to $ 1,528 an ounce and the euro strengthened against the dollar with a change of 1,1166.

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