Novosti i prognoe: tržište kapitala od 04-12-2019

Major US stock indexes rose moderately, helped by Bloomberg reports that US-China negotiations on the first phase of the deal are developing, despite the harsh rhetoric of the US president.

As informed sources told the agency, the parties are approaching agreements on what tariffs should be abolished and how to guarantee China's purchase of agricultural products from the United States. One source also noted that a bill passed by the U.S. Congress to sanction senior Chinese officials for human rights abuses in Hong Kong and Xinjiang should not affect negotiations.

However, CNBC correspondent in Beijing Eunice Yun wrote on Twitter that its sources say that China believed that they had a deal in principle to abolish tariffs in early November, but Trump backed away from him. “Therefore, it is unclear how close [to the deal] the two sides really are,” she added.

US President Donald Trump himself told reporters before meeting with German Chancellor Angela Merkel that trade negotiations with China are progressing "very well." He also noted that he is optimistic about trade negotiations with the EU, and believes that the United States will make great progress.

At the same time, market participants almost ignored the disappointing reports from ADP and ISM. A survey by ADP showed that companies added the smallest number of workers in six months, highlighting the trend of a slowdown in hiring amid an outflow of corporate investment and simultaneously pointing to a slowdown in economic growth in the fourth quarter. According to the data, in November the number of jobs increased by 67,000 - the second lowest since 2010 - after a revised increase of 121,000 in October. This turned out to be below the forecasts of economists (135 00) 0.

An ISM report showed that business activity in the US services sector slowed more than expected in November, amid continuing concerns about trade tensions and a shortage of workers. According to the report, the index of non-productive activity fell to 53.9 from 54.7 in October. A reading above 50 indicates an expansion in the services sector, which accounts for more than two-thirds of US economic activity. Economists had forecast the index to fall to 54.5 in November.

Most DOW components completed trading in positive territory (24 out of 30). The biggest gainers were JPMorgan Chase & Co. (JPM; + 1.94%). Outsiders were shares of Cisco Systems, Inc. (CSCO; -0.82%).

Almost all S&P sectors recorded an increase. The base materials sector grew the most (+ 1.3%). Only the conglomerate sector decreased (+ 0.1%).

At the time of closing:

Dow 27,664.93 +162.12 +0.59%

S&P 500 3,113.48 +20.28 +0.66%

Nasdaq 100 8,568.11 +47.47 +0.56%