MARKETS US / Permanent – Investors expect a more moderate trajectory of increases | News

Author: Steffen Gosenheimer

NEW YORK (Dow Jones) – US stocks continued to gain on Thursday with the S&P 500 rising for the fourth day in a row. The minutes of the last meeting of the US central bank, released yesterday in the evening, contributed to the purchasing mood. According to him, as expected, the US central bank is likely to tighten interest rates again in July, with most expecting another big step of 75 basis points.

At the same time, however, it cannot be completely ruled out that the step might be smaller. On the one hand, due to the negative consequences for the economy, and on the other, due to the recently falling oil prices and the strong dollar, they relieve inflation, which triggered the cycle of interest rate increases. This fueled speculation about the less aggressive stance of central bankers and associated hopes of avoiding a recession.

In line with this, US Federal Reserve banker James Bullard said he saw a good chance of a soft landing for the economy despite having to raise interest rates. The official data from the US labor market on Friday may provide new information on how the economy is doing.

The Dow Jones index gained 1.1 percent to 31,385 points. The S&P 500 index increased by 1.5 percent. The Nasdaq indices, with many of the often highly prized upward stocks, rose as much as 2.39 percent. As market interest rates have fallen in the past few days, valuations have become significantly more favorable again.

According to preliminary information, Nysa had 2,527 (Wednesday: 1,279) winners and 725 (2.009) losers. 133 (119) titles were closed unchanged.

Although yields in the bond market have risen again, they are still well below the May highs. Moreover, short-term bonds yield higher returns than long-term bonds, which is a sign of an impending recession.

Gold (+ 0.1%) ended the eight-day drought with losses, some of them significant.

Oil prices have rebounded sharply – US gas prices are going up

Oil prices likely played a role in rising market interest rates on Thursday. After the recent sharp losses, they have recovered significantly, recently as much as almost 4 percent, although weekly crude oil reserves in the US have unexpectedly and dramatically increased. However, gasoline stocks fell. In addition, US natural gas prices rose by almost 13 percent. Here, new stocks were much lower than expected.

The dollar remained a safe haven and sought after thanks to relatively high interest rates in the US. The euro recently cost $ 1.0160. Sterling rose slightly after British Prime Minister Boris Johnson announced his resignation from at least the Conservative Party leader, but intends to remain prime minister until a replacement is found. Some political uncertainty has already been priced in here in recent weeks, and there is hope for more stable political leadership as well – at least in the long term, he said.

Bed Bath & Beyond bullish – Gamestop splits

The stock market was favored by cyclical stocks, mainly car stocks with a sub-index plus 5.5%. At the end of the day, less cyclical stocks of household appliances manufacturers were posted (-0.3%).

Bed Bath & Beyond jumped more than 21 percent. The driver was notified by the Securities and Exchange Commission that interim boss Sue Gove had purchased 50,000 shares and two board members of 10,000 each. Bed Bath & Beyond fired ex-CEO Mark Tritton last week after weak business results.

In the case of Merck & Co, it fell by 0.1 percent. According to informants, the pharmaceutical company is currently in advanced negotiations on the acquisition of the American biotechnology company Seagen. A purchase price of over $ 200 per share is being discussed. Seagen still gained only 1.6 percent to $ 177.96. Before the first rumors appeared on June 16, the price was still a good $ 146

The price of the Gamestop increased by 15.1 percent. The company plans to split the stock in a 1: 4 ratio, which will make the stock visually cheaper and therefore more tradable. Gamestop was followed by another so-called meme exchange, AMC Entertainment (+ 15.2%), which is often carried by contracts on social networks, soaring.

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INDEX last + / -% absolute + / -% YTD

DJIA 31 384.55 + 1.1% 346.87 -13.6%

S&P 500 3,902.62 + 1.5% 57.54 -18.1%

Nasdaq Comp. 11 621.35 + 2.3% 259.49 -25.7%

Nasdaq-100 12 109.05 + 2.2% 256.47 -25.8%

US bonds

Term Profitability Bp to VT Profitability VT +/- Bp YTD

2 years 3.02 +4.1 2.98 229.0

5 years 3.05 +6.1 2.99 178.7

7 years 3.08 +7.4 3.00 163.6

10 years 3.00 +7.1 2.93 149.5

30 years old 3.19 +7.1 3.12 129.5

FOREX last +/-% Th 8:02 Wed 17:05% YTD

EUR / USD 1.0160 -0.2% 1.0207 1.0188 -10.6%

EUR / JPY 138.19 -0.2% 138.67 138.22 + 5.6%

EUR / CHF 0.9897 + 0.1% 0.9896 0.9886 -4.6%

EUR / GBP 0.8452 -1.1% 0.8544 0.8559 + 0.6%

USD / JPY 136.01 + 0.1% 135.85 135.66 + 18.2%

GBP / USD 1.2021 + 0.9% 1.1946 1.1904 -11.2%

USD / CNH (offshore) 6.6946 -0.3% 6.7009 6.7125 + 5.4%

Bitcoin

BTC / USD 21 640.74 + 6.4% 20 265.00 20 127.03 -53.2%

ROHOEL the last VT-Settl. +/-% +/- USD% YTD

WTI / Nymex 102.29 98.53 + 3.8% 3.76 + 41.8%

Brent / ICE 104.16 100.69 + 3.4% 3.47 + 39.1%

GAS VT close +/- EUR

Dutch TTF 184.50 174.50 + 7.9% 13.50 + 36.0%

METALS last day before +/-% +/- USD% YTD

Gold (spot) 1 740.46 1 738.77 + 0.1% +1.69 -4.9%

Silver (Spot) 19.23 19.21 + 0.1% +0.02 -17.5%

Platinum (spot) 876.75 860.15 + 1.9% +16.60 -9.7%

Future Miedź 3.56 3.42 + 4.0% +0.14 -20.0%

YTD at the end of the day

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Contact the author: maerkte.de@dowjones.com

DJG / DJN / voice

(END) Dow Jones Newswires

Jul 07 2022 4:12 PM ET (20:12 GMT)

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