THE DOW HAS GAINED 39,78 POINTS
by Noel Randewich
NEW YORK (Reuters) – The Dow index-Jones of the New York stock Exchange has registered a new closing record on Friday and signed his best performance week since December 2011 after the unexpected victory of Donald Trump in the us presidential election.
The Dow Jones rose 39,78 points, or 0.21 per cent, 18.847,66. The Standard & Poor’s 500, penalised among other things by the drop in oil, however, has yielded 3,03 points (-0,14%) to 2.164,45 while the Nasdaq Composite gained 28,32 points (+0,54%) to 5.237,11.
Even if the euphoria has started to wane, investors continue to bet on the positive impact of the campaign promises of the republican, especially in respect of simplification of the regulatory framework in the health and finance but also major infrastructure projects.
“Wall Street will look closely at the appointments (decided by Trump) and its ad policy to see if they validate the tone more optimistic, observed in the markets these last days”, says Alan Gayle, head of investment strategy and director of asset allocation for RidgeWorth Investments.
The S&P financial values has gained more than 8% over the past three sessions, back to levels of 2008, during the financial crisis, without however having yet deleted it completely from the after-effects of it. The industrials, meanwhile, took 4.8% and that of health is 3.1%.
On the economic data front, the only important indicator of the day was the first estimate of the consumer confidence index from the university of Michigan, who gives to 91.6, well above the consensus (87,5) and at the highest since June.
DECLINE in ENERGY, HEALTH AND RAW MATERIALS
on The side of the federal Reserve, the vice-chairman, Stanley Fischer, said that the growth prospects seemed strong enough to allow a progressive rise in interest rates, while stressing that the Fed was attentive to the movement of the rising costs of long-term loan to the Treasury.
Thursday, the yield on Treasuries at the ten-year reached its highest level for ten months, to 2.15%, the prospect of a Donald Trump for implementing a policy leading to widening deficits have led to a rise in sudden inflation expectations.
The bond market was closed Friday for Veterans Day.
The meeting was also marked by the relapse of the oil prices, the imbalance between supply and demand being returned to the forefront of the market. The light crude to u.s. West Texas Intermediate, WTI) lost 2.8% on the day at 43,41 dollars per barrel.
The compartment of the energy has dropped to 1.66%, the biggest decline of the major sector indices-S&P, health care, abandoning 1,49%, and the raw materials to 1.32%.
The values, the oil companies Exxon Mobil and Chevron are disposed respectively 1,59% and 1.07%, with the fall of the barrel but the largest drop of the Dow returns to the giant pharmacy Pfizer, which abandoned of 2.69% on the day.
THE DOLLAR is STILL driven BY INFLATION EXPECTATIONS
the increase, Walt Disney has gained 2,86%, the best performance in the Dow, after the promise of a return to earnings growth over the next two years, which has compensated for the results marked by the setbacks of the bouquet of sports channels ESPN.
progression is the most striking of the day is, however, a specialist of graphics processors Nvidia, which jumped 29.8%, thanks to the announcement of the more rapid growth of its quarterly revenue over the last six years.
On the whole of the week, the Dow gained 5,36%. The S&P has taken a 3.8 per cent – its best performance week since October 2014 – and the Nasdaq 3,78%. With respect to the volatility index, Vix, has fallen by 37% in five sessions to go back to 14,17.
About 9.6 billion shares changed hands on Friday, a volume that is significantly higher than $ 7.5 billion recorded in average on the 20 previous meetings.
On the foreign exchange market, the dollar, still buoyed by the prospect of a presidency for Trump to promote the rise of inflation in the United States, has continued to grow, registering a high of nine months in the face of a reference basket consisting of other major currencies and to more than 2% higher on the week.
The euro was traded at the end of the session around 1,0860 dollar, after falling to 1,0836, the lowest since march.
The greenback has also registered historic highs in the face of the mexican peso and the chinese yuan.
(with Yashaswini Swamynathan; Marc Angrand for the French service)
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