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NEW YORK (Dow Jones) – Wall Street was more or less flat on Wednesday. Initial recovery efforts do not take long. Significantly falling oil prices are pushing the inflation specter somewhat away as rising energy prices are seen as a factor in inflation. However, widely spotted consumer prices are due to be released on Wednesday and could come with negative surprises.
The Dow Jones index rose by around noon (New York City time) 0.2 percent to 31,248 points, the S&P 500 showed little change. Nasdaq Composite fell 0.1 percent. Dealers talk of clear recession fears – which can be read from falling oil prices, rising bond prices and the strength of the dollar.
For the first time since 2002, the euro has caught up with the dollar. The dollar index now tends to stick to its own and thus clearly returns from the daily highs – slowed down by a sharp drop in market interest rates. In addition to falling oil prices, copper is considered a barometer of the recession. The major industrial metal is currently down about 3 percent on the London futures exchange. Last month, the price was down a fifth, and from its last all-time record in March, copper is down 30 percent.
Concerns about a recession have gained further momentum with new blockades in China. Because the new supply chain difficulties now looming, they may further fuel inflation and provide the US Federal Reserve with the arguments for a rapid pace of monetary tightening – and with the slowing growth that is currently being observed. “There will be a recession, but we are not yet there. The important thing is that liquidity is reduced, says Ninety One’s wealth manager Philip Saunders.
With over 2 percent At a discount, the energy sector is the weakest sector – burdened with falling oil prices. Meanwhile, the reporting period for US companies has begun. Pepsico exceeded market expectations in terms of sales and profits in the second quarter. The price increases by 0.1 percent. The AngioDynamics medical technology provider course drops 0.9 percent. A 13% increase in sales in the fourth quarter led to a reduction in quarterly loss – although higher costs and staff shortages continued to put pressure on margins. AngioDynamics expects further sales growth in the beginning of fiscal 2023.
Gap share is presented with 4%. at a discount. The course is a reaction to the resignation of the head of the company Soni Syngal. He leaves the fashion group after just over two years. In addition, Gap warned that given the ongoing decline in sales, profits would also decline. The failure of Pricesmart by 8.7 percent. The operator of clubs with membership camps in Central America and the Caribbean reported disappointing third-quarter results.
Oil prices drop by around 7%. due to concerns about an impending recession and a possible decline in demand. But there are also reasons for selling on the supply side. US President Joe Biden flies to Saudi Arabia, incl. to persuade the Kingdom to increase its oil production. Crude oil production from the Organization of Petroleum Exporting Countries (OPEC) fell short of targets in June. However, total OPEC production increased in June. Members of Iran, Venezuela and Libya are also exempt from group quotas.
The bond market is on the way to a recession where prices are rising significantly again and yields are falling as a result. 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. Greenback and US government bonds are being sought as a supposedly safe haven in economically uncertain times.
Despite the uncertain times, gold is also not in demand. A strong dollar weighs on the price of the precious metal, and gold is also caught in a vortex of falling commodity prices – especially base metals.
INDEX last + / -% absolute + / -% YTD
DJIA 31 247.55 + 0.2% 73.71 -14.0%
S&P 500 3 852.53 -0.0% -1.90 -19.2%
Nasdaq Comp. 11 355.96 -0.1% -16.64 -27.4%
Nasdaq-100 11 847.78 -0.1% -12.50 -27.4%
Term Profitability Bp to VT Profitability VT +/- Bp YTD
2 years 3.04 -4.9 3.09 230.7
5 years 3.00 -7.0 3.07 173.6
7 years 2.99 -8.5 3.07 154.8
10 years 2.92 -7.7 2.99 140.6
30 years of age 3.10 -7.6 3.18 120.1
FOREX last +/-% Tue 8:14 Mon, 17:42% YTD
EUR / USD 1.0067 + 0.3% 1.0024 1.0077 -11.5%
EUR / JPY 137.60 -0.3% 137.70 138.42 + 5.1%
EUR / CHF 0.9878 + 0.1% 0.9861 0.9877 -4.8%
EUR / GBP 0.8456 + 0.2% 0.8452 0.8470 + 0.6%
USD / JPY 136.68 -0.6% 137.38 137.34 + 18.7%
GBP / USD 1.1906 + 0.1% 1.1863 1.1897 -12.0%
USD / CNH (offshore) 6.7347 + 0.1% 6.7382 6.7152 + 6.0%
BTC / USD 19 857.95 -1.9% 19 864.00 20 410.60 -57.1%
ROHOEL the last VT-Settl. +/-% +/- USD% YTD
WTI / Nymex 96.60 104.09 -7.2% -7.49 + 33.9%
Brent / ICE 100.10 107.10 -6.5% -7.00 + 33.6%
GAS VT close +/- EUR
Dutch TTF 175.95 163.50 + 6.9% 11.43 + 43.4%
METALS last day before +/-% +/- USD% YTD
Gold (spot) 1,732.15 1,733.98 -0.1% -1.83 -5.3%
Silver (Spot) 19.11 19.11 0% 0 -18.0%
Platinum (Spot) 850.23 873.78 -2.7% -23.55 -12.4%
The future of copper 3.33 3.44 -3.2% -0.11 -25.1%
YTD at the end of the day
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DJG / DJN / cln / flf
(END) Dow Jones Newswires
July 12, 2022 12:13 PM CET (4:13 PM GMT)
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