US MARKETS / Stock Exchange compensates losses – Biden mitigates | News

NEW YORK (Dow Jones) – After sharp losses at the start of trading, the US stock markets rebounded from their daily lows on Wednesday. The initial shock caused by the unexpectedly sharp rise in consumer prices is wearing off. According to trade representatives, the US president’s reassuring words may have contributed to this: Joe Biden admitted that the inflation level was “unacceptably high”, but also called the June data “out of date”. They did not yet reflect gasoline prices, which have fallen significantly since then.

Annual consumer price inflation was initially worrying. It was expected to rise to 8.8 percent, 8.6 percent, but US inflation actually hit 9.1 percent. This is the first time since 1981 that 9 is ahead of the decimal point. The base index is also above forecast. From noon (New York time), the Dow Jones index fell 0.6 percent to 30,785 points, while the S&P 500 and Nasdaq Composite fell 0.4 percent and 0.2 percent, respectively.

Even slightly higher figures would justify the prospect of a fast pace on the part of the US central bank in the fight against inflation. Now the values ​​may point to even tighter Monetary policy towards the Fed. In this perspective, fears of a stock market recession are mounting as the long-awaited soft landing of the economy becomes less and less likely. “There should be no doubt that key interest rates will be raised by 75 basis points this month,” says the industry. However, the camp of those who even expect a 100 bp rate hike is growing: if such a step was priced at 7.6% on Tuesday, it was already 42% on Wednesday.

Delta Air Lines descending

Amid rising expectations of interest rates, the banking sector is losing 1.9 percent, although higher interest rates favor the institutes’ business model. But now fears of a recession prevail, they say. Among the individual shares, Delta Air Lines fell by 6.7 percent. The airline fell short of market expectations on the profit side in the second quarter. However, sales exceeded forecasts and were above pre-pandemic levels. The price of the industrial supplier Fastenal drops 5.8 percent. Retailers report solid Q2 results, but sales growth is disappointing. In addition, retailers are concerned about weaker demand trends due to high inflation.

After a temporary increase, the dollar rebounded slightly despite mounting interest rate speculation. The dollar index fell 0.2 percent but remains at its highest level in 20 years. The euro is recovering slightly. Meanwhile, the Canadian dollar appreciates against its US counterpart. Over 100 basis pointsrate hike the US central bank has so far only been speculated, the Bank of Canada has already taken this step on Wednesday. One Canadian dollar pays 0.7722 US dollars. The daily minimum before the interest rate decision is 0.7658.

Concerns about a recession prevail in the bond market, which is reflected in a clearly inverted yield curve. Fears of recession related to interest rate speculation, combined with the strong US dollar, are slowing oil prices. However, they began to plunge sharply on Tuesday as WTI and Brent prices fell below $ 100 per barrel, meaning losses are now limited. The significantly increased U.S. crude oil stocks are no longer a burden either.

Meanwhile, gold prices are recovering as the dollar weakens slightly. Against the background of uncertain economic prospects, a precious metal can be searched for.

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

DJIA 30 784.73 -0.6% -196.60 -15.3%

S&P 500 3,801.83 -0.4% -16.97 -20.2%

Nasdaq Comp. 11,238.51 -0.2% -26.22 -28.2%

Nasdaq-100 11 722.43 -0.2% -22.56 -28.2%

US bonds

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

2 years 3.11 +6.6 3.04 237.7

5 years 3.03 +0.3 3.03 177.0

7 years 3.02 -2.0 3.04 157.9

10 years 2.95 -2.5 2.97 143.9

30 years old 3.14 -2.5 3.16 123.9

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

EUR / USD 1.0087 + 0.5% 1.0032 1.0077 -11.3%

EUR / JPY 138.44 + 0.8% 137.46 138.42 + 5.8%

EUR / CHF 0.9858 + 0.0% 0.9852 0.9877 -5.0%

EUR / GBP 0.8458 + 0.2% 0.8424 0.8470 + 0.7%

USD / JPY 137.26 + 0.3% 137.03 137.34 + 19.2%

GBP / USD 1.1925 + 0.3% 1.1909 1.1897 -11.9%

USD / CNH (offshore) 6.7164 -0.3% 6.7297 6.7152 + 5.7%

Bitcoin

BTC / USD 19 359.20 + 0.1% 19 465.47 20 410.60 -58.1%

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

WTI / Nymex 95.42 95.84 -0.4% -0.42 + 32.2%

Brent / ICE 98.65 99.49 -0.8% -0.84 + 31.7%

GAS VT close +/- EUR

Dutch TTF 180.50 175.10 + 4.6% 7.89 + 32.5%

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

Gold (spot) 1,738.50 1,726.16 + 0.7% +12.34 -5.0%

Silver (Spot) 19.25 18.93 + 1.7% + 0.32 -17.4%

Platinum (Spot) 862.45 849.38 + 1.5% +13.08 -11.1%

The future of copper 3.31 3.30 + 0.4% +0.01 -25.5%

YTD at the end of the day

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Contact the author: maerkte.de@dowjones.com

DJG / DJN / cln / flf

(END) Dow Jones Newswires

July 13, 2022 12:24 PM ET (4:24 PM GMT)

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