Wall Street starts again on cheap purchases

Wall Street starts again on cheap purchases

PARIS (Reuters) – The New York Stock Exchange bounced back on Tuesday as investors seized buying opportunities offered by the recent sharp sell-off.

The Dow Jones index gained 431.72 points, or 1.77% to 24,874.64 points.

The broader S & P-500 took 41.38 points (1.57%) to 2,682.63 points.

The Nasdaq Composite advanced by 111.36 points (1.58%) to 7.161,65 points.

Wall Street had started a rebound in Monday's meeting after last week's snap, finally falling apart at the close, fear of escalating Sino-US trade tensions and a stall by big names in the internet. and technology.

Tuesday's climate has benefited from a thinning on the trade front after the words of Donald Trump, who said Monday night on Fox News that it was possible to conclude a "big deal" with China on trade.

The US president warned, however, that billions of dollars of additional tariffs were ready if necessary.

VALUES

Tuesday's rebound was supported by tech stocks, leading semiconductor manufacturers, with Intel gaining more than 5%.

All sector indices of the S & P-500 ended in the green with increases of over 2% for communications, materials, industry and energy.

Against the trend, General Electric plunged nearly 9% after slashing its quarterly dividend and announced the split in two entities of its activity in electricity after a heavy quarterly loss.

INDICATORS OF THE DAY

In the United States, consumer confidence, higher than expected in October, remains at its highest level since September 2000, according to the Conference Board's monthly survey.

THE SESSION IN EUROPE

European stock markets ended in a disorganized manner, penalized in particular by poorly-received quarterly results and disappointing growth in the eurozone.

In Paris, the CAC 40 index finished down 0.22% at 4,978.53 points. The British Footsie took 0.14% and the German Dax fell by 0.42%.

In securities, BNP Paribas lost 2.80%, the largest decline in ACC, after the announcement of a contraction of its revenues in the third quarter.

RATE

In the bond market, the yield on 10-year Treasuries, the center of attention, took more than two basis points to pass 3.11%.

In Europe, the 10-year German Bund reacted little to the acceleration of German inflation in October, which validates the decision of the European Central Bank to gradually tighten monetary policy.

EXCHANGE

On the foreign exchange market, the dollar takes 0.4% against a basket of reference currencies, near a new peak of two and a half months.

The euro is trading around 1.1345 dollars, down 0.25%, after the announcement of growth below expectations in the third quarter in the euro area.

The single currency is also reacting to Angela Merkel's statements that her tenure as chancellor would be the last and that she would give up the leadership of the CDU.

OIL

Crude prices ended sharply lower on the New York Nymex market, penalized by the risk of an intensification of the Sino-US trade dispute as well as by signs of an increase in global supply despite the sanctions to come against Iran.

The December contract on US light crude (West Texas Intermediate, WTI) lost 86 cents, or 1.28%, to 66.18 dollars a barrel.

Brent crude of the same maturity dropped $ 1.43 (1.85%) to $ 75.91.

THINGS TO LOOK FOR WEDNESDAY:

The day will be busy in Asia with the monetary policy decision of the Bank of Japan and the publication of Chinese official PMI indices for the month of October.

In Europe, it will be necessary to follow the latest retail sales figures in Germany as well as inflation and unemployment in the euro area.

In the United States, ADP's monthly private employment survey and the PMI Manufacturing Index in the Chicago area are on the agenda.

(Patrick Vignal, with Terence Gabriel in New York)

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