Wednesday, October 06, 2021
After signals from the US Senate
Wall Street gets the hang of it
Wall Street starts with losses, but then two important news provide relief and rising US indices: On the one hand, Russia wants to counter the global energy crisis with gas deliveries. On the other hand, a solution is emerging in the dispute over raising the debt ceiling.
Wall Street is driven by the hope of a solution to the dispute between Democrats and Republicans over US government spending. The courses, which in the early days of trading were still clearly in the red, turned into positive territory after signs of a compromise. The leading US index Dow Jones closed 0.3 percent stronger with 34,416 points and thus around 560 points above its daily low. The technology-heavy one Nasdaq advanced 0.5 percent to 14,501 positions, the broad one S&P 500 0.4 percent on 4363 counters.
Senate leader Mitch McConnell had previously said his party would support an extension of the federal debt ceiling through December. This should prevent a crisis. If there is an agreement between Democrats and Republicans, a month-long stalemate would end. US Treasury Secretary Janet Yellen had already announced days ago that if the debt ceiling of currently 28.4 trillion dollars is not raised, the US may no longer be able to meet its payment obligations from mid-October.
In early trading, prices had come under pressure for fear of an imminent end to the US money glut. The concern was fueled by surprisingly strong US employment figures from the private employment agency ADP. This could cause the Federal Reserve to tighten the monetary policy reins faster than previously thought, said Mike Loewengart, chief investment strategist at the brokerage house E * Trade. Nevertheless, the job creation is also a sign of economic recovery.
Energy price rally is fueling inflation fears
The US type of crude oil WTI climbed temporarily to a seven-year high of 79.78 dollars a barrel (159 liters), but cost in late US trade with 77.06 dollars around two percent less than the previous day. The picture was similar for US natural gas, which initially rose to $ 6.466, its highest level in around seven years, but ended up being almost ten percent cheaper than the previous day at $ 5.705. One reason for this was the announcement by Russian President Vladimir Putin that he would expand gas deliveries. “The situation remains complicated,” warned Neil Wilson, chief analyst at the online broker Markets.com. “Winter is approaching and the supply is still scarce.”
One of the losers on Wall Street was initially Apple. The iPhone provider is threatened with a cartel penalty from the EU. The authorities want to force him to open his smartphone payment system Apple Pay to rivals. In late trading, however, the price turned positive.
Also in demand were titles from Palantir, which were 1.6 percent more expensive. The analysis software specialist received a major order from the US Army.