MRKTE US / Wall Street alleviates China’s misfortunes | News

NEW YORK (Dow Jones) – The resurgence of the Chinese crown pandemic on Monday weakened sentiment in the stock markets. New Covid 19 outbreaks are being reported from several Chinese cities – including again the economic metropolis of Shanghai. The government has already introduced new restrictions. This means that there is a risk of new supply bottlenecks emerging with corresponding effects fueling inflation. Additionally, the new price data from China was at least slightly higher than expected, limiting the ability of the Chinese central bank to support the economy with monetary easing measures. China just can’t get Corona under control, a trader says.

Early in the trade, the Dow Jones index fell 0.6 percent to 31,164 points, while the S&P 500 and Nasdaq Composite fell by 1.1 and 2.0 percent, respectively. The technology-laden Nasdaq is therefore following the weak technological values ​​of Chinese exchanges. “While the bears can still see 10-15 percent. more drops for the S&P 500, sympathy for the bull market is growing. We are already in the middle of a shallow slowdown, which could be the best scenario for risk, ”says the market. strategist Stephen Innes in SPI Asset Management.

As the reporting season for US companies slowly begins this week, another factor of uncertainty appears on the market. Because then the company’s results will show to what extent too high inflation reduced consumer demand. “We wouldn’t be surprised if the upcoming earnings season in the US were a catalyst for a fall in US stocks and another fall in US stocks,” warns market strategist Michael Arone of State Street Global Advisors.

The topic of the talks on Wall Street is also a twitter argument – the title loses 6.5 percent. Tesla boss Elon Musk withdrew from the intended $ 44 billion purchase of the short message service. According to a letter from Musk’s lawyers, the background is that Twitter has not released all the requested information about potentially fake user accounts. Tesla shares fell 1.5 percent.

Euro on its way to dollar parity

The fall in risk appetite supports the dollar, while the dollar index is rising by 1.0%. – is favored by the weakness of the euro. A complete suspension of Russian gas supplies to Europe would likely lead to a recession in the US Eurozone and would push the euro down a further 10 percent, Societe Generale analyst Kit Juckes is concerned. He cites Sunday’s comments by the French finance minister Bruno Le Maire that the most likely scenario is a complete disruption of Russian gas supplies.

Fears of a recession are supporting the bond market and weighing down on oil prices. Rising US government bond prices are pushing yields down in the supposed safe haven. An inverted yield curve, where two-year stocks yield more than ten-year stocks, is seen as a wake-up call. Because in the market, this constellation is interpreted as a recession warning.

With the impending blockades in China, fears of a recession deepen and oil demand expectations are lowered – as a result, prices are falling. Traders also cite this as the reason behind the fall in prices in the market for base metals raw materials. This also raises the price of gold to red a bit.

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

DJIA 31 164.29 -0.6% -173.86 -14.2%

S&P 500 3 855.03 -1.1% -44.35 -19.1%

Nasdaq Comp. 11,407.83 -2.0% -227.48 -27.1%

Nasdaq-100 11 881.75 -2.0% -243.94 -27.2%

US bonds

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

2 years 3.05 -5.8 3.11 232.3

5 years 3.06 -7.0 3.13 179.7

7 years 3.08 -6.7 3.14 163.7

10 years 3.02 -6.7 3.08 150.5

30 years old 3.18 -7.1 3.25 128.1

FOREX last +/-% Mon, 8:03 Fri, 18:30% YTD

EUR / USD 1.0054 -1.3% 1.0140 1.0160 -11.6%

EUR / JPY 138.37 -0.2% 138.95 138.33 + 5.7%

EUR / CHF 0.9893 -0.6% 0.9926 0.9944 -4.6%

EUR / GBP 0.8462 -0.0% 0.8469 0.8452 + 0.7%

USD / JPY 137.62 + 1.1% 137.02 136.14 + 19.6%

GBP / USD 1.1882 -1.3% 1.1974 1.2023 -12.2%

USD / CNH (offshore) 6.7253 + 0.5% 6.7084 6.6913 + 5.8%

Bitcoin

BTC / USD 20 476.04 -2.6% 20 480.81 21 662.20 -55.7%

ROHL last VT-Settl. +/-% +/- USD% YTD

WTI / Nymex 102.50 104.79 -2.2% -2.29 + 42.0%

Brent / ICE 105.66 107.02 -1.3% -1.36 + 41.1%

GAS VT close +/- EUR

Dutch TTF 171.20 169.13 -2.3% -4.01 + 45.2%

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

Gold (spot) 1,736.66 1,742.80 -0.4% -6.14 -5.1%

Silver (Spot) 19.17 19.31 -0.7% -0.14 -17.8%

Platinum (Spot) 877.38 898.00 -2.3% -20.62 -9.6%

Future Miedź 3.46 3.53 -2.2% -0.08 -22.2%

YTD at the end of the day

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Contact the author: maerkte.de@dowjones.com

DJG / DJN / flf / cln

(END) Dow Jones Newswires

July 11, 2022 09:48 ET (13:48 GMT)

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