shares in this article
By Steffen Gosenheimer
NEW YORK (Dow Jones) — After the sharper losses of the past few trading days, Wall Street looks to have got off to a little different start on Tuesday with a slight upward trend. Many investors’ eyes are already focused on the end of the week, when the annual meeting of central bankers takes place in Jackson Hole and new price data from the USA, which has received a great deal of attention from the central bank, is also due. In this respect, events might increasingly be determined by waiting.
Shortly following the start of trading, however, various purchasing manager data from the USA are on the calendar, which might certainly cause movement. In the Eurozone their counterparts have turned out to be mixed overall and have largely left the actors cold.
After staging a 17% summer rally and hitting a three-month high, the S&P 500 is down regarding 4% since Aug. 16. A “poison cocktail” of fear of inflation, the threat of recession and further energy shortages have made investors risk-averse once more, says Richard Hunter, market expert at Interactive Investors, describing the situation.
Market interest rates speak for unimpressed central bank
According to signals from US Federal Reserve circles, speculation is now that the monetary watchdogs will be unperturbed by signs that inflation may have peaked when the next interest rate decision is made, and will therefore continue their aggressive rate hike course to contain inflation. It remains to be seen whether Fed Chairman Powell will provide more clarity on Friday.
At least the ten-year yield, following a clearer decline to around 2.5 percent in the meantime, has now reached over 3 percent once more, and the current trend is still rising.
“Inflation is still a real challenge and the Fed needs to remain extremely persistent and maintain its tight monetary policy stance,” said Susannah Streeter, investment manager at Hargreaves Lansdown in London.
The dollar continues to hover once morest the euro near an all-time high since the common currency’s inception. The euro is now trading well below par at $0.9920.
In addition to interest rate concerns, there are also fears of a recession, presumably originating in Europe as a result of the gas supply crisis there. Last but not least, the gas price explosion in Europe is also leaving its mark on the US gas price, which has reached its highest level since 2008, says Swissquote analyst Ipek Ozkardeskaya.
Zoom very weak expected – Palo Alto very tight
In terms of individual values, high losses are emerging for Zoom Video Communications following the video communications provider lowered its forecast. The second-quarter results, meanwhile, contained ups and downs. The stock on Nasdaq.com lost around 11 percent premarket.
At Palo Alto Networks (pre-market +9.8%), on the other hand, figures and outlook are well received. The cyber security specialist also announced a stock split and is expanding its share buyback program.
Business figures also come from the retail sector. Department store operator Macy’s did better than expected in the second quarter, but lowered its forecast for the year. The price increases by 1.4 percent. Dick’s Sporting Goods improved 2.4 percent. Unlike Macy’s, the sporting goods retailer has flanked its good quarterly figures with an elevated outlook.
The medical technology group Medtronic earned 22 percent more despite a drop in sales and confirmed the forecast. The course is slightly up pre-market.
US Bonds
Term Yield Bp to VT Yield VT +/-Bp YTD
2 years 3.33 +2.1 3.31 260.1
5 years 3.19 +3.7 3.16 193.3
7 years 3.15 +3.6 3.11 171.0
10 years 3.05 +2.2 3.02 153.7
30 years 3.25 +2.4 3.23 135.5
FOREX last +/- % Tue, 7:45 am Mon, 18:07 % YTD
EUR/USD 0,9916 -0,3% 0,9921 0,9937 -12,8%
EUR/JPY 136.47 -0.2% 136.18 136.70 +4.2%
EUR/CHF 0.9610 +0.3% 0.9571 1.0361 -7.4%
EUR/GBP 0,8439 -0,2% 0,8441 0,8452 +0,4%
USD/JPY 137,61 +0,1% 137,23 137,55 +19,6%
GBP/USD 1,1751 -0,1% 1,1753 1,1756 -13,2%
USD/CNH (Offshore) 6,8690 +0,0% 6,8691 6,8730 +8,1%
Bitcoin
BTC/USD 21.373,97 +1,3% 21.025,97 21.389,61 -53,8%
ROHOEL last VT-Settlem. +/- % +/- USD % YTD
WTI/Nymex 91,55 90,36 +1,3% +1,19 +29,0%
Brent/ICE 97,47 96,48 +1,0% +0,99 +30,9%
GAS VT-Settlem. +/- EUR
Dutch TTF 263,95 276,75 -4,6% -12,80 +324,9%
METALS last day before +/- % +/- USD % YTD
Gold (Spot) 1.731,25 1.736,31 -0,3% -5,06 -5,4%
Silver (Spot) 18.81 19.04 -1.2% -0.23 -19.3%
Platinum (Spot) 869.05 879.33 -1.2% -10.28 -10.5%
Kupfer-Future 3,68 3,65 +0,7% +0,03 -17,0%
YTD at the close of the day
Contact the author: maerkte.de@dowjones.com
DJG/DJN/gos/mgo
(END) Dow Jones Newswires
August 23, 2022 08:58 ET (12:58 GMT)
Leverage must be between 2 and 20
No data
