(CercleFinance.com) – US equity markets fell again on Wednesday, risk aversion having been fueled by concerns about the health situation in China: the Dow Jones dropped 3.6% to 31,490 points, while the Nasdaq Composite fell 4.7% to 11,418 points.
Some traders attributed the amplification of the losses of the major New York indices to information evoking the decision, by the Chinese authorities, to confine Binhai, an important zone of economic development of the city of Tianjin.
Investors know that the containment measures imposed by Beijing in many Chinese regions in order to contain the Covid-19 epidemic risk penalizing the country’s growth, but also global activity.
Renewed concern about the economic situation bolstered the appeal of the bond compartment: yields on 10-year Treasuries thus fell by 10 basis points to end the session at 2.88%.
On the macroeconomic front, housing starts in the United States were virtually flat (-0.2%) last month, missing expectations, while the number of building permits fell 3.2%.
On the value side, Target fell almost 25% after the chain of discount food stores delivered quarterly results below expectations, notably victim of “abnormally high” costs.
The market also penalized the worse than expected results of the DIY store chain Lowe’s, whose title dropped 5.1% after quarterly EPS increased by 9%, but turnover fell by 4%. like-for-like.
Analog Devices lost 2.4% and thus outperformed the trend, following the publication by the semiconductor manufacturer, for its second quarter 2021-22, of an adjusted EPS up 56% for revenues up by 87%.
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