In the last five sessions, the index Featured Dow Jones Industrial Average lost 1.43% to 15,973.84 points and the Nasdaq, dominated by technology, 0.59% to 4337.51 points.
Considered the most representative by many investors, the broader S & amp; P 500 declined 0.81% to 1864.78 points.
Symbol of a week of uncertainty – in which the indices have sometimes changed direction in session or finish the day in a disorganized – investors remained puzzled by the main US economic event of the week, intervention two days of Janet Yellen, president of the US central bank.
The head of the Federal Reserve (Fed) “ used 15,000 words before the US Congress … But investors are not much more advanced ” summarized in a note experts from Deutsche Bank.
As markets are looking for clues on the Fed’s willingness to continue the withdrawal of support to the economy, already questioned by the recent market turmoil when he was primer in December, Ms. Yellen has hardly advanced by holding “ premature ” to draw conclusions on the US monetary policy.
“ The engine of the week for me is that markets have shown that they had lost confidence in central banks ” ruled Gregori Volokhine Meeschaert Financial Services, evoking fears born of negative interest rates of taxation in Europe and Japan, as well as the fact that Ms. Yellen has been forced to raise the subject – while staying there as very conservative.
“ It turns out that these negative rates are destroying an entire segment of the economy: the banking system “, he continued, arguing that US institutions were better armed than their European counterparts, but noting that they had not resisted more the stock market since the beginning of the year.
– China returns –
In this context, “ Tuesday will be the day of all dangers ” he warned, minimizing the important economic indicators next week.
Wall Street will remain closed for a public holiday effect Monday, which will give him a late session on other large squares, a long interruption in a period of market instability.
First, the Chinese markets, closed during the past week because of local new year will make their comeback in the long list of slippery conditions for investors.
“ This is China that will be the key ,” said Tom Cahill, Ventura Wealth Management. “ We will see how this market will integrate the instability of this week on global markets. The Japanese stock market fell alarmingly and I think this will put China under pressure. If this is the case, it may add to the excitement on Wall Street. “
” However, it could also rebound sharply once there is any new favorable ” , he has qualified. “ We have seen how oil prices have rebounded sharply amid rumors about an agreement within the Organization of Petroleum Producing Countries (OPEC). ”
Although the correlation between oil market and Wall Street, notable since late 2015, has somewhat etiolated this week, the New York Stock Exchange has been partially recover over the weekend in the wake of a jump more than 10% in oil prices, in the hope that OPEC agrees on a drop in production.
Finally “ really the question I ask myself is when we begin to be concerned about contracting policy ,” admitted Mr. Volokhine in reference to the US presidential campaign.
Given the loss of confidence in the central banks, “ it seems increasingly that the revival of the economy, it goes through a tax reform with lower taxes , “he reported, adding that, on this level, investors instead relied on the Republican side.
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