US MARKETS / weaker – Withdrawal from stocks ahead of inflation data | News

NEW YORK (Dow Jones) – US stock markets fell again on Tuesday. Recovery approaches have not continued. Significantly falling oil prices initially cast off the specter of inflation, as the rise in energy prices is seen as a factor in inflation. However, widely spotted consumer prices are due to be released on Wednesday and could come with negative surprises. Investors did not want to get caught on the wrong foot and withdrew from the stock exchange just in case. They did not trust the US government’s attempts to reassure them by pointing out that last month’s figures were now out of date.

The Dow Jones index fell 0.6 percent and the S&P 500 closed 0.9 percent. weaker. The Nasdaq Composite also fell 0.9 percent. There have been 1,373 (979) price winners and 1,818 (2,233) losers. 130 (163) shares closed unchanged. Dealers spoke of clear recession fears – as seen in 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 remained high towards the end of the trade, far below the daily highs – hampered by sharply declining market interest rates. In addition to falling oil prices, copper is considered a barometer of the recession. The price of an important industrial metal fell by 5%. 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.

Pepsico convinced

At a discount of about 2 percent. the weakest sector was the energy sector – burdened with falling oil prices. Meanwhile, the reporting period for US companies has begun. But even good data pushed to the background in a negative environment: Pepsico exceeded market expectations in terms of sales and profits in the second quarter. Nevertheless, this share was closed by 0.6%. Medical technology provider AngioDynamics’ course dropped 0.1 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 shares were sold at 5 percent. at a discount. The course responded 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. Pricesmart fell by 9.6 percent. The operator of clubs with membership camps in Central America and the Caribbean reported disappointing third-quarter results.

Much cheaper

Oil prices fell by around 8%. 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 was well on the way to recession, where prices rose significantly again and, as a result, yields fell. 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 was also not in demand. The strong dollar weighed on the price of the precious metal, and gold was also caught in falling commodity prices – especially base metals.

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

DJIA 30 981.33 -0.6% -192.51 -14.7%

S&P 500 3,818.80 -0.9% -35.63 -19.9%

Nasdaq Comp. 11,264.73 -0.9% -107.87 -28.0%

Nasdaq-100 11 744.99 -1.0% -115.30 -28.0%

US bonds

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

2 years 3.04 -4.9 3.09 230.7

5 years 3.01 -5.6 3.07 174.9

7 years 3.03 -4.4 3.07 158.9

10 years 2.96 -3.2 2.99 145.0

30 years old 3.15 -2.9 3.18 124.9

FOREX last +/-% Tue 8:14 Mon, 17:42% YTD

EUR / USD 1.0036 -0.0% 1.0024 1.0077 -11.7%

EUR / JPY 137.32 -0.5% 137.70 138.42 + 4.9%

EUR / CHF 0.9858 -0.1% 0.9861 0.9877 -5.0%

EUR / GBP 0.8442 -0.0% 0.8452 0.8470 + 0.5%

USD / JPY 136.85 -0.4% 137.38 137.34 + 18.9%

GBP / USD 1.1888 -0.0% 1.1863 1.1897 -12.2%

USD / CNH (offshore) 6.7388 + 0.2% 6.7382 6.7152 + 6.1%

Bitcoin

BTC / USD 19 404.78 -4.1% 19 864.00 20 410.60 -58.0%

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

WTI / Nymex 95.73 104.09 -8.0% -8.36 + 32.7%

Brent / ICE 99.19 107.10 -7.4% -7.91 + 32.4%

GAS VT close +/- EUR

Dutch TTF 175.10 163.50 + 6.4% 10.58 + 43.4%

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

Gold (spot) 1,725.49 1,733.98 -0.5% -8.49 -5.7%

Silver (Spot) 18.93 19.11 -1.0% -0.18 -18.8%

Platinum (Spot) 846.05 873.78 -3.2% -27.73 -12.8%

Future Miedź 3.26 3.44 -5.2% -0.18 -26.6%

YTD at the end of the day

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Contact the author: maerkte.de@dowjones.com

DJG / DJN / cln

(END) Dow Jones Newswires

July 12, 2022 4:11 PM ET (20:11 GMT)

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