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MARKET REVIEW. The New York Stock Exchange moderated its post-open decline as it turned into the red again on Thursday, after two losing sessions, realizing the Fed could cut monetary support as early as this year, amid concern as to the resurgence of the pandemic.

For its part, the Toronto Stock Exchange also opened in the red when only three of its eight sectors are in the green.

The clues

the S & P / TSX of Toronto was down 125.41 points, or 0.62%, to 20,176.70.

In New York, the S&P 500 lost 1.17 points, or 0.03%, to 4,399.10 points.

the Dow jones was down 20.31 points, or 0.06%, to 34,940.38 points.

the Nasdaq was down 16.19 points or 0.11% to 14,509.72 points.

the loonie was down 0.76% to US $ 0.78367.

the oil was down US $ 1.74, or 2.67%, to US $ 63.47.

THE’gold fell US $ 4.00, or 0.22%, to US $ 1,780.40.

The Canadian dollar was trading at 79.56 US cents from 79.91 US cents on Friday.

The context

“It was not pretty yesterday at the finish, it won’t be pretty today at the opening”, summarized Patrick O’Hare.

Even though the Fed report goes back to the meeting at the end of July, the minutes of the Monetary Committee rocked Wall Street, as they show that the idea of ​​reducing monetary support as early as this year is gaining ground in view of the progress on the economic and employment front.

But for Briefing.com’s Patrick O’Hare, “this shouldn’t have been interpreted as a surprise revelation.”

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The negative market reaction is “more of an excuse to take money off the table,” the analyst added.

Since the epidemic, the Fed has bought US $ 120 billion worth of treasury bills and other securities each month to support the recovery, support it intends to ease.

“Unless investors have been completely asleep in recent months over these plans by the Fed to cut back its support and only now recognize that it will wane and eventually come to a halt, the Committee minutes monetary do not seem to justify the massive sale that occurred on Wednesday ”, also judged Karl Haeling of LBBW.

For the analyst, it was “more likely that an accumulation of other factors such as the global Covid resurgence and China’s economic slowdown combined to burst the bullish bubble.”

Before the turbulence this week, the Dow Jones and the S&P 500, more representative of the US market, came out of five consecutive sessions of increases, pushing them to successive records.

The indicators released Thursday before the opening were mixed.

Weekly jobless claims continued to decline in early August to 348,000 from an expected 370,000, but manufacturing activity in the Philadelphia area slowed in August for the fourth month in a row, falling back to its December level. 2020, to the surprise of analysts.

The decline in equities was shared by nine of the eleven sectors of the SP. The energy sector was the red lantern (-1.93%) in the wake of the plunge in crude prices since the start of the week.

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Exxon lost almost 2%, Chevron 2.31%, the exploration service provider Devon Energy 3.29%.

Auto stocks slipped into negative territory like GM (-2.14%), Ford (-0.99%) as Japanese giant Toyota announced to reduce its global production in September by 40% from what it had expected due to a shortage of parts.

You’re here lost 1.51% to US $ 678.14.

The online broker Robinhood, IPO recently, dropped 7.31% to 45.87 dollars after announcing its results the day before.

The popular brokerage app lost US $ 502 million on revenue of US $ 565 million which doubled in one year.

Yields on ten-year Treasuries were down a bit to 1.24% from 1.25% the day before.


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