[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market closed higher as it overcame concerns over violent protests and US-China trade conflicts, driven by expectations of economic recovery.
On the 1st (local time), the Dow Jones Industrial Average rose 91.91 points (0.36%) to close at 25,475.02, the S&P 500 index increased by 11.42 points (0.38%) to 3,055.73, and the Nasdaq index gained 62.18 points (0.66%) to finish at 9,552.05.
Concerns about US-China relations continued to pressure the market that day. This was influenced by reports that Chinese authorities instructed state-owned enterprises importing agricultural products to halt imports of US soybeans and pork. Purchasing US agricultural products is a key element of the Phase One trade agreement.
This is interpreted as a retaliatory measure following US President Donald Trump's announcement on the 29th of last month that he had ordered the initiation of procedures to revoke Hong Kong's special status. However, since President Trump did not mention the trade agreement between the two countries, some analysts suggested that the situation is not the worst.
Despite the ongoing violent protests in response to the death of George Floyd and New York City's decision to impose a nighttime curfew, the market appeared largely unfazed by the negative impact.
The Institute for Supply Management (ISM) announced that the US manufacturing Purchasing Managers' Index (PMI) for May recorded 43.1, rebounding from April's 41.5. The final seasonally adjusted US manufacturing PMI for May, released by information provider IHS Markit, rose to 39.8 from the previous month's confirmed 36.1. The improvement in economic indicators is raising expectations that the US economy could recover rapidly as economic activities resume.
West Texas Intermediate (WTI) crude oil for July delivery closed at $35.44 per barrel, down 0.1% (0.05 dollars) from the previous trading day. August gold delivery closed at $1,750.30 per ounce, down 0.08% (1.40 dollars) from the previous trading day.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
