US to delay some tariffs with China – stocks up

The US Trade Administration has delayed some tariffs with China. Tariffs, which were about to come into force in September, are now delayed until mid December. The goods, valued at 300 billion dollars, are related to some electronics, toys and clothings.

The US financial markets jumped after the news and Dow Jones -index is trading up 1,6 % and Nasdaq nearly 1,9 % up. The larger S&P 500- index is also trading up, 1,5 % and the Brent oil future is having over 5 % increase. Euro is trading at 1,12 dollars.

Business Finance

Retail lead the rise in Wall Street

Retail sector was the leading one in Wall Street trading today on Wednesday.  For example Amazon reported record high holiday sales and the stock jumped over 9 % to 1470 dollars. The financial markets in general jumped sharply after the deep decline before the Christmas time.

Dow Jones -index gained 4,98 % and ended at 22878 points. Tech-index Nasdaq jumped 5,84 % to 6554 points and S&P 500 -index 4,79 % to 2463 points.

The Brent Crude (ICE) rose 8,66 % to 54,84 dollars.

Dollar declined slightly to 1,135 dollars and UK sterling 0,25 % to 1,26 dollars.

On Thursday the European markets will also open the trading after the Christmas holidays.

Business Finance

US tax cuts to boost also EU economy

The US tax cuts are expected to support the growth also in the EU. According to the European Central Bank´s policy meeting in December,  the impact of the cuts have not been calculated in the estimates earlier.

The Central Bank has estimated that the GDP will grow 2,3 % this year and 1,9 & next year. For the year 2020 the growh estimate is 1,7%. For example the IMF has estimated that the growth would be 1,7 % in 2019.

This positive sign from the ECB memo was fuelling the rally in the currency and bond markets yesterday. For example the German 2 year bond yield increased by 4 basis points to minus 0,57 percent. And euro was trading 1,20 against US dollar. Also the Brent Oil increased to three year high and was over 70 dollars a barrel due to production cuts by OPEC. Stock markets were mixed.

 

Business