(CercleFinance.com) – US equity markets relapsed on Wednesday morning and are on track to erase their gains from the previous day, concerns about the health situation in China prompting investors to flee risky assets again.
At the end of the morning, the Dow Jones dropped 1.7% to 32,083.9 points, while the Nasdaq Composite dropped by more than 2% to 11,741.2 points.
Some traders attribute the amplification of the losses of the major New York indices to reports evoking the decision by the Chinese authorities to confine Binhai, an important economic development zone 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 could penalize the country’s growth, but also global activity.
Renewed concerns about the slowing Chinese economy are weighing on commodity and oil prices, with US light crude currently down 0.8% to $111.5.
On the debt front, Treasuries yields eased a little, with 10-year paper yields falling to 2.94% after the publication of housing starts below expectations.
As for values, the Target distributor unscrews by almost 25% after having delivered quarterly results below expectations, victim in particular of “abnormally high” costs.
The market also punishes the results below expectations of the chain of DIY stores Lowe’s, which dropped more than 4% after publishing an EPS up 9%, but a turnover down 4% on a like-for-like basis.
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