US MARKETS / concerns about easing the recession support Wall Street | News

NEW YORK (Dow Jones) – On Tuesday, some of the positive momentum on Wall Street will come from Europe. Reports from the community about the resumption of Russian gas supplies via the Nord Stream 1 pipeline since Thursday have caused an increase in prices on European exchanges. According to investors’ calculations, this could eliminate the risk of a recession in Europe. Had Europe avoided recession, it would also have a positive effect on the US economy. The Dow Jones index gained 1.5 percent to 31,548 points midday ET, while the S&P 500 and Nasdaq Composite indices gained 1.9 and 2.2 percent respectively. Persistent high inflation, how the US Federal Reserve tackles it, and the risk of the economy slipping into recession remain key issues.

According to analysts, the growing pessimism of investors could serve as a counter-signal and prepare the ground for a short-term uptrend. A widely publicized Bank of America study found global fund managers were the most pessimistic since 2008. Fading fears of a recession may therefore encourage many institutional investors to take a more positive stance.

“Stock prices have plunged sharply. That doesn’t mean we won’t see more drops in some stock exchanges around the world (…) but I think we are much closer to the bottom than the top – Significant positive catalysts may emerge in the coming months, says market strategist Kristina Hooper of Invesco . Data from the US construction industry contained light and shadow but did not move the market.

Put Apple’s excitement aside

Apple has provided the excitement – also with the economic trend in mind. But the initial shock is over. Apple is apparently gearing up for a possible economic downturn. According to the district report, the tech group wants to act more cautiously in uncertain times. However, the strong dollar is also a blow in the face of Apple in the face, the rate is up 1.7%.

IBM shares fell 6.5 percent. While the IT firm has exceeded expectations in terms of sales and earnings, this worsens the outlook for the second half of the year: a strong dollar will become a problem for IBM and likely slow down sales growth. Johnson & Johnson also cut their forecasts for this year due to the strength of the dollar, but outperformed expectations in the second quarter. The share price is 0.7 percent weaker.

Toy maker Hasbro (+ 1.8%) returned to profitability, beating expectations. On the other hand, the company dealing with defense technologies Lockheed Martin (-1.3%) disappointed expectations, and the prospects are also not convincing.

Novavax grew 12.7 percent after the company announced a deal with South Korean SK Bioscience to produce the Covid-19 vaccine, which also protects against the omicron strain of the virus.

Falling interest rate expectations are slowing dollar growth

Meanwhile, the dollar continues to retreat from its most recent 20-year high as foreign exchange participants speculate about the possibility ofrate hike by 100 basis points. A rate hike of 75 basis points is now again considered the most likely scenario. The dollar index fell by another 0.7 percent. Easing recession fears also weighs on the dollar. Meanwhile, the euro is recovering slightly from speculation that the European Central Bank may raise interest rates by more than its previously announced 25 basis points on Thursday.

As with the dollar, fears of a recession are somewhat overestimated in the bond market and yields rise as prices fall. However, the yield curve is still inverted, which is seen as a harbinger of a recession.

Oil prices remain stagnant after the previous day’s rally. However, according to the industry, tight supply should prevent a clear setback. In Oanda, it is possible that oil has reached a price peak so far. Prices should not fall significantly, however, unless countries in the OPEC + interest group surprise with a sharp increase in production volume.

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

DJIA 31 547.74 + 1.5% 475.13 -13.2%

S&P 500 3,902.65 + 1.9% 71.80 -18.1%

Nasdaq Comp. 11,607.99 + 2.2% 247.94 -25.8%

Nasdaq-100 12 133.03 + 2.2% 255.53 -25.7%

US bonds

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

2 years 3.20 +3.4 3.16 246.6

5 years 3.12 +1.2 3.10 185.6

7 years 3.10 +1.1 3.09 166.3

10 years 3.00 +1.7 2.98 149.1

30 years old 3.16 +0.1 3.16 125.8

FOREX last +/-% Tue 8:31 Mon, 17:25% YTD

EUR / USD 1.0235 + 0.9% 1.0158 1.0169 -10.0%

EUR / JPY 141.19 + 0.7% 140.09 140.51 + 7.9%

EUR / CHF 0.9915 + 0.0% 0.9908 0.9930 -4.4%

EUR / GBP 0.8516 + 0.3% 0.8481 0.8476 + 1.4%

USD / JPY 137.95 -0.1% 138.01 138.18 + 19.8%

GBP / USD 1.2019 + 0.6% 1.1975 1.1996 -11.2%

USD / CNH (offshore) 6.7470 -0.2% 6.7526 6.7530 + 6.2%

Bitcoin

BTC / USD 23 003.12 + 6.2% 22 088.14 22 247.30 -50.2%

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

WTI / Nymex 102.82 102.60 + 0.2% 0.22 + 42.5%

Brent / ICE 106.36 106.27 + 0.1% 0.09 + 42.0%

GAS VT close +/- EUR

Dutch TTF 154.60 159.60 -1.7% -2.66 + 41.5%

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

Gold (spot) 1,712.69 1,709.37 + 0.2% +3.32 -6.4%

Silver (Spot) 18.81 18.70 + 0.6% +0.11 -19.3%

Platinum (spot) 875.65 866.43 + 1.1% +9.22 -9.8%

The future of copper 3.29 3.35 -1.8% -0.06 -26.0%

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 19, 2022 12:29 PM CET (4:29 PM GMT)

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