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Bearish closure on Wall Street in the penultimate session of a record year



Wall street has registered sales (Dow Jones: -0.64%; S&P 500: -0.58%; Nasdaq: -0.67%) in the penultimate session of 2019. A year in which US equity has registered strong gains, which have led to mark historical highs. The S&P 500, the world's leading indicator, accumulates an annual increase close to 29%, his best behavior since 1997.

The excellent behavior of American equities questions whether the so-called 'Santa Claus' rally. The data collected by Traders Almanac ensure that, since 1950, the S&P 500 has risen 1.3% on average in the last three sessions of the outgoing year and in the first two days of the incoming.

Market sentiment has been strengthened in recent weeks by the trade agreement reached between the US and China. As part of the agreement, Washington has committed to progressively withdraw tariffs Chinese export taxes, while Beijing will increase its imports of energy and agricultural products.

As published by 'The South China Morning Post', the Chinese Deputy Prime Minister, Liu heHe will travel to Washington on Saturday to sign the pact next week. For his part, Trump's business advisor, Peter Navarro, has told Fox News that the document "will probably be signed next week." In this regard, he added that "we are just waiting for the translation".


Edward Yardeni, president of Yardeni Research, has commented on CNBC that the New York Stock Exchange is rising too fast in recent months. This strategist, who has maintained a bullish approach with the market in recent years, anticipates that the S&P 500 may end 2020 at levels of 3,500 points.

But at the same time, consider "very likely" that a correction of between 10% and 20% will occur if that upload target is reached too soon. "What worries me is that nobody is worried anymore. The bags behave better when there is a wall of worries," he added.


In the plane US macroeconomic, November business inventories remained flat, below the expected rise of 0.3%. In addition, the trade balance deficit US fell in November to 63.2 billion dollars, below the predicted 68,000 million.

For its part, the Chicago Fed PMI in December it rose to 48.9 from 46.3, a figure that has exceeded the forecast of 48.0. Finally, pending home sales rose 1.2% in November, slightly above the expected 1.1%.

On Thursday, the weekly unemployment data and the December manufacturing PMI will be published. And on Friday, the Federal Reserve US (Fed) will publish the minutes of its monetary policy meeting, held in mid-December.

At the business level, the actions of Tesla they have fallen 3.6% after the manufacturer of electric cars has set historical highs in recent days. So far this year, it accumulates a gain of 24%. In the Dow Jones, the most bearish values ​​have been IBM (-1.8%) and Walt Disney (-1.3%).

In other markets, the barrel of West Texas oil falls 0.15%, to 61.63 dollars. In addition, the euro appreciates 0.25% and changes to $ 1,1200. Finally, the profitability of US ten-year bond it rises to 1.92%, while the two-year bond advances to 1.59% and the three-month bond falls to 1.55%.

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