US MARKETS / Stocks supported by easing recession fears | News

NEW YORK (Dow Jones) – Part of the positive momentum on Wall Street came from Europe on Tuesday. This gave the US stock markets the highest daily profit in over a month. Reports from circles about the resumption of Russian gas supplies via the Nord Stream 1 pipeline since Thursday fueled 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.

“If you look at what is happening in the real economy through the eyes of our customers, I would say the chances of us entering a recession now are less than 50/50,” said Bruce Van Saun, Citizens CEO. Financial group. The Dow Jones index climbed 2.4 percent to 31,827 points in hopes of no recession, while the S&P 500 and Nasdaq Composite indices increased by 2.8 percent and 3.1 percent, respectively. There were 2,711 (Monday: 1,690) winners on Nysa, compared to 552 (1,566) losers – 117 (145) titles closed unchanged.

According to analysts, the pessimism of investors can 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.

Put Apple’s excitement aside

Apple has provided the excitement – also with the economic trend in mind. But the initial shock passed quickly. 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 to Apple’s face, the rate rose 2.7 percent.

IBM shares fell 5.2 percent. While IT exceeded expectations in terms of sales and earnings, this worsened the outlook for the second half of the year: as for Apple, a strong dollar is likely to slow down sales growth. Johnson & Johnson also lowered their outlook for this year due to the strength of the dollar. The share price was 1.5 percent. weaker.

Toy maker Hasbro (+ 0.7%) returned to profitability and even exceeded expectations. On the other hand, defense tech company Lockheed Martin (+ 0.8%) had disappointed expectations and the prospects were also disappointing, but the rate turned positive late along with a positive overall market. Novavax grew 11.6 percent after the company announced an agreement 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

The dollar continued to pull back from the last 20-year high as FX market participants raised the Fed’s opportunityrate hike valued at 100 basis points. The interest rate hike by 75 basis points was considered the most likely scenario. The dollar index fell by another 0.6 percent. Easing fears of the recession also weighed on the dollar, which is considered a safe haven in uncertain times. Meanwhile, the euro gained a bit of speculation that the European Central Bank may raise interest rates more than announced on Thursday by 25 basis points.

As with the dollar, fears of a recession were priced in in the bond market as well, with yields rising as prices fell. However, the yield curve remained inverted, which is considered to be a harbinger of a recession.

Oil prices continued to rise after yesterday’s rise. Without a recession, demand should hold. The tight supply should prevent a clear setback, he said from the trade. However, almost nothing happened in the gold market.

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

DJIA 31 827.05 + 2.4% 754.44 -12.4%

S&P 500 3,936.69 + 2.8% 105.84 -17.4%

Nasdaq Comp. 11 713.15 + 3.1% 353.10 -25.1%

Nasdaq-100 12 249.42 + 3.1% 371.92 -24.9%

US bonds

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

2 years 3.24 +7.5 3.16 250.7

5 years 3.14 +3.9 3.10 188.3

7 years 3.12 +3.3 3.09 168.4

10 years 3.02 +3.6 2.98 151.1

30 years old 3.18 +1.9 3.16 127.5

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

EUR / USD 1.0225 + 0.8% 1.0158 1.0169 -10.1%

EUR / JPY 141.33 + 0.8% 140.09 140.51 + 8.0%

EUR / CHF 0.9907 -0.1% 0.9908 0.9930 -4.5%

EUR / GBP 0.8520 + 0.4% 0.8481 0.8476 + 1.4%

USD / JPY 138.24 + 0.1% 138.01 138.18 + 20.1%

GBP / USD 1.2001 + 0.4% 1.1975 1.1996 -11.3%

USD / CNH (offshore) 6.7476 -0.2% 6.7526 6.7530 + 6.2%

Bitcoin

BTC / USD 23 372.79 + 7.9% 22 088.14 22 247.30 -49.4%

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

WTI / Nymex 104.23 102.60 + 1.6% 1.63 + 44.4%

Brent / ICE 107.31 106.27 + 1.0% 1.04 + 43.3%

GAS VT close +/- EUR

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

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

Gold (spot) 1,711.94 1,709.37 + 0.2% +2.57 -6.4%

Silver (Spot) 18.77 18.70 + 0.4% +0.07 -19.5%

Platinum (Spot) 877.25 866.43 + 1.2% +10.82 -9.6%

The future of copper 3.29 3.35 -1.7% -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

(END) Dow Jones Newswires

July 19, 2022 4:10 PM ET (20:10 GMT)

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