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NEW YORK (Dow Jones) – Wall Street presented itself on Wednesday in the volatile premium business. The persistently high inflation data in the US initially pushed the decline, but the US stock indices rebounded and turned positive. As the price increase did not accelerate. The Dow Jones index rose 1.2 percent to 32,545 points around noon local time, while the S&P 500 and Nasdaq Composite indices increased by 1.1 and 0.2 percent, respectively. Reports from China also support the stock exchange. The pandemic should subside somewhat there. This means that the tight blockages may soon be alleviated. The axis of development, however, is the development of inflation.
Although US inflationary pressure has eased somewhat, US consumer prices continued to rise more strongly than previously feared in April. It is debatable whether inflation has actually peaked as expected by observers. However, some economists believe inflation will drop to 5%. by the end of the year, even after the data. As a result, fears of stagflation weaken somewhat and support the stock market.
Dollar with entry and exit
The dollar initially rose with the prospect of a rapid monetary tightening, but is now declining again by 0.3 percent. They say the decisive factor is easing inflationary pressures.
Yields in the US follow a mixed trend. At the short end, yields rise in anticipation of further interest rate hikes, and at the long end they fall due to the search for security. Yields on 10-year US government bonds fell below the 3 percent threshold again.
Meanwhile, oil prices are rising. If blockades in China are relaxed or even lifted, it should boost demand, according to retailers. The People’s Republic of China has the second highest level of hunger in the world. And if the EU succeeded in embarrassing Russian oil, Russian companies would be forced to cut production. As the country cannot completely redirect its EU exports – there is a lack of infrastructure. Hence, it is said that global supply is likely to decline.
The price of gold is rising – also due to the outlook on China. Unexpectedly high inflation rates from China are stimulating the precious metal. There, both producer prices and consumer prices increased much more than previously feared during the year. However, as China’s central bank is more inclined to think about easing its monetary policy, gold is sought as a classic protection against inflation.
Game titles in focus
Among individual actions, the focus was on actions from the gaming sector with ID cards. Electronic Arts (EA) grew by 12 percent. While business data for the fourth quarter is not very convincing and the forecast also provides little argument to buy, investors are focusing on the new games EA announced at the time of the data release.
Roblox rose 10 percent after the online gaming provider reported a greater loss in the first quarter than analysts had expected. The company, however, has the prospect of new business areas. While Unity Software has lived up to expectations with its first-quarter results, the video game software developer has released a disappointing sales forecast. The rate collapses by 33.9 percent.
In addition to the gaming industry, tax consultancy H&R Block also provided well-received business data. Shares gain 17 percent. In contrast, Eastman Kodak shares reacted down 12.7% from the first quarter.
Pixelworks gained 12.2 percent after a software and semiconductor supplier for video and pixel processing reported in the first quarter.
INDEX last + / -% absolute + / -% YTD
DJIA 32 545.15 + 1.2% 384.41 -10.4%
S&P 500 4043.47 + 1.1% 42.42 -15.2%
Nasdaq Comp. 11 765.07 + 0.2% 27.40 -24.8%
Nasdaq-100 12 371.87 + 0.2% 26.01 -24.2%
Term Profitability Bp to VT Profitability VT +/- Bp YTD
2 years 2.67 +5.8 2.61 194.2
5 years 2.93 +1.7 2.91 167.2
7 years 2.99 -0.4 2.99 154.5
10 years 2.96 -2.9 2.99 145.3
30 years old 3.08 -5.1 3.13 117.9
FOREX last +/-% Wed 8:22 Tue 17:32% YTD
EUR / USD 1.0551 + 0.2% 1.0547 1.0534 -7.2%
EUR / JPY 137.38 + 0.0% 137.41 137.25 + 5.0%
EUR / CHF 1.0444 -0.4% 1.0485 1.0485 + 0.7%
EUR / GBP 0.8555 + 0.0% 0.8548 0.8564 + 1.8%
USD / JPY 130.20 -0.2% 130.36 130.26 + 13.1%
GBP / USD 1.2333 + 0.2% 1.2340 1.2298 -8.9%
USD / CNH (offshore) 6.7414 -0.1% 6.7485 6.7606 + 6.1%
BTC / USD 31 378.42 + 3.8% 31 420.44 31 149.37 -32.1%
ROHL last VT-Settl. +/-% +/- USD% YTD
WTI / Nymex 104.87 99.76 + 5.1% 5.11 + 42.9%
Brent / ICE 107.08 102.46 + 4.5% 4.62 + 40.9%
METALS last day before +/-% +/- USD% YTD
Gold (spot) 1,853.82 1,838.46 + 0.8% +15.36 + 1.3%
Silver (Spot) 21.79 21.27 + 2.5% + 0.52 -6.5%
Platinum (Spot) 1 001.03 968.43 + 3.4% +32.60 + 3.2%
Copper Future 4.22 4.15 + 1.5% +0.06 -5.3%
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DJG / DJN / once / flf
(END) Dow Jones Newswires
May 11 2022 12:23 PM CET (4:23 PM GMT)
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