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US markets end mostly in green on Friday

31 Aug 2019 Evaluate

The US markets ended choppy trading session mostly in green on Friday after Beijing and Washington appeared to adopt less strident tones on trade. China’s foreign ministry said US and China negotiators were maintaining effective communication. Though, there was some uncertainty about whether the US and China will resume trade talks next month and finally reach an elusive trade deal. President Donald Trump has repeatedly claimed the Chinese are desperate to reach an agreement, arguing the US tariffs on Chinese goods are doing significant damage to the world's second largest economy. Meanwhile, China has signaled that they do not currently intend to retaliate against Trump's latest threat to raise the rate of tariffs on Chinese imports. Chinese officials have expressed interest in negotiating an end to the escalating trade dispute but argued the US has to create conditions for the two sides to resume talks on the basis of mutual respect.

A mixed batch of US economic data also contributed to the lackluster day of markets. the Commerce Department released a report showing personal income crept up by less than expected in the month of July, although the report still showed a bigger than expected increase in personal spending during the month. The Commerce Department said personal income inched up by 0.1% in July after climbing by an upwardly revised 0.5% in June. Street had expected personal income to rise by 0.3% compared to the 0.4% increase originally reported for the previous month. Meanwhile, a separate report from the University of Michigan showed US consumer sentiment deteriorated by even more than initially estimated in the month of August. The report said the consumer sentiment index for August was downwardly revised to 89.8 from the preliminary reading of 92.1. The revised reading is down sharply from the final July reading of 98.4, showing the biggest monthly drop since December of 2012.

Dow Jones Industrial Average rose 41.03 points or 0.16 percent to 26403.28 and S&P 500 was up by 1.88 points or 0.06 percent to 2926.46, while Nasdaq was down by 10.51 points or 0.13 percent to 7962.88.

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