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US stocks continue rising in anticipation of trade negotiations with China

Indices global component

The US currency continued strengthening

On Monday, there was no single trend in the US stock market. Indices S&P 500 and Nasdaq 100 slightly increased, whereas Dow Jones Industrial Average lost 0.2 %. Investors’ attention is still focused on the upcoming US-China trade negotiations, that will be held February 13-14. Earlier, US President Donald Trump announced that if negotiations end up with failure, from March 1, 2019 import duties of 10% to 25% on the import of Chinese goods worth $ 200 billion a year will be increased. Surely this will cause reciprocal measures by the Chinese authorities and will intensify of global trade wars. The stock market is supported by good corporate data.

Currently two thirds of S&P 500 companies have already reported for the 4th quarter of 2018, of which more than 230 companies have exceeded profit forecasts. Now investors expect that quarterly profit growth will be an impressive 16.5%. At the same time in the 1st quarter of 2019, the total profit may be reduced by 1%. Against the backdrop of increasing global risks, the ICE US Dollar Index continued to increase for the 6th consecutive day and updated the maximum in 2019. Today it is not expected to publish significant macroeconomic indicators in the United States. Futures on US stock index indicate a higher opening.

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