MARKETS USA / Goldman figures and hopes for interest rates support the stock market | News

NEW YORK (Dow Jones) – Good results from Goldman Sachs and further easing of interest rate concerns supported Wall Street on Monday. Investors are less concerned that the US Federal Reserve will raise interest rates by 100 basis points at its upcoming meeting, trade sources say. The probability of an interest rate hike of more than 100 basis points is valued on the market at less than 30%. Last week, it was over 90 percent in some cases. One rate hike however, by 75 basis points it is priced according to the industry.

The Dow Jones index climbed 0.5 percent to 31,447 around midday EST, already recovering its daily peak. The S&P 500 and Nasdaq Composite indices rose by 0.8 and 1.4 percent, respectively. Fading away interest rate fantasies are supported by the technologically advanced and therefore interest rate sensitive Nasdaq. “Time will tell if that momentum sustains this week – or beyond. When the SPX experienced similar failures in the past, it was usually taller a week later, ”said Morgan Stanley market strategist Chris Larkin of the S&P 500 Futures and its defeat last week.

Two other major US banks, Goldman Sachs and Bank of America, reported the progress of the second quarter. While Goldman saw profits drop sharply for the quarter, it still outperformed expectations. The share increased by 3.2%. Profits in Bank of America (+ 0.9%) also declined significantly and also fell short of analysts’ expectations. However, the council paints a pink picture of consumer finances, noting that customers have increased spending while keeping deposits high.

Alphabet shares rose 0.1 percent. The 1:20 share split will come into effect on Monday. Aircraft orders from Delta Air Lines and Japan’s ANA helped boost Boeing’s stock by 2.7 percent.

Oil price supported by weak dollar

Away from the USMonetary policy and the reporting season, the European Central Bank’s interest rate meeting with possibly the first interest rate hike since 2011, and the impending energy crisis in Europe were key themes on Wall Street, according to Deutsche Bank. The market eagerly awaits whether Russian gas will return to Europe via the Nord Stream 1 pipeline, which is currently being shut down for maintenance.

With the prospect of the first interest rate hike in eleven years, the euro is recovering somewhat, and the dollar index is down 0.8 percent. Declining speculation on the Fed’s 100bp rate hike weakens the dollar. The euro is torn between tensions between the interest rate hike by the ECB on Thursday, which most believed was too low, and speculation about a possible larger interest rate hike. A 25 basis point hike in interest rates would be a move that Saxo Bank strategists say is “too small and too late”. Meanwhile, Julius Br said the ECB may raise interest rates by more than expected 25 basis points, which should strengthen the euro.

Oil market prices are following the euro higher, according to traders, and the dollar, which has returned from its 20-year high, is supporting oil prices. The price weakness in Rohl over the past week was mainly due to the strong dollar, they say. The price of gold also benefits from the weakness of the dollar.

Meanwhile, government bonds are not in demand and investors are again willing to take risks. Falling prices increase profitability. However, the yield curve is still clearly inverted, which is interpreted as a signal of a recession.

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

DJIA 31 447.44 + 0.5% 159.18 -13.5%

S&P 500 3,893.80 + 0.8% 30.64 -18.3%

Nasdaq Comp. 11 614.71 + 1.4% 162.29 -25.8%

Nasdaq-100 12 148.18 + 1.4% 164.56 -25.6%

US bonds

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

2 years 3.19 +6.3 3.12 245.7

5 years 3.13 +8.5 3.05 187.1

7 years 3.11 +9.5 3.01 166.8

10 years 3.01 +8.8 2.92 149.5

30 years old 3.18 +9.7 3.08 127.7

FOREX last +/-% Mon, 8:30 Fri, 17:34% YTD

EUR / USD 1.0169 + 0.8% 1.0089 1.0091 -10.6%

EUR / JPY 140.50 + 0.6% 139.48 139.81 + 7.4%

EUR / CHF 0.9924 + 0.7% 0.9846 0.9869 -4.3%

EUR / GBP 0.8476 -0.3% 0.8489 0.8507 + 0.9%

USD / JPY 138.18 -0.3% 138.25 138.53 + 20.0%

GBP / USD 1.1996 + 1.1% 1.1887 1.1865 -11.4%

USD / CNH (offshore) 6.7527 -0.2% 6.7549 6.7666 + 6.3%

Bitcoin

BTC / USD 22 402.23 + 6.6% 21 954.74 20 855.24 -51.5%

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

WTI / Nymex 101.92 97.59 + 4.4% 4.33 + 41.2%

Brent / ICE 105.82 101.16 + 4.6% 4.66 + 41.3%

GAS VT close +/- EUR

Dutch TTF 159.60 160.80 + 0.0% 0.03 + 35.2%

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

Gold (spot) 1711.36 1707.70 + 0.2% +3.66 -6.5%

Silver (Spot) 18.89 18.70 + 1.0% +0.19 -19.0%

Platinum (Spot) 873.80 848.75 + 3.0% +25.05 -10.0%

Copper Future 3.35 3.23 + 3.6% +0.12 -24.6%

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 18, 2022 12:26 PM CET (4:26 PM GMT)

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