Amazon is causing a stir
Investors are holding back because of the Fed meeting
07/06/2022, 11:05 p.m
In the evening, the US monetary authorities will discuss further steps in the fight against inflation. Because of the appointment, many Wall Street investors are keeping their feet still. Amazon’s participation in the delivery service GrubHub is causing a stir.
Few investors on Wall Street have dared to come out of cover ahead of the Federal Reserve Board meeting minutes. Of the Dow Jones Index and the broader one S&P 500 were more or less on the spot at 31,037 and 3845 points. The index of the technology exchange Nasdaq stagnated at 11,852 points.
At the meeting in mid-June, the FED had increased its key interest rate by three quarters of a percentage point – the biggest jump since 1994. In the evening the monetary watchdogs held out the prospect of another interest rate hike for the end of July by 05.05 percent or 0.75 percent.
Investor fears of more major rate hikes and a resulting recession were reflected in rising bond prices, pushing the yield on the 10-year US Treasury to a five-week low of 2.793 percent. Investors also braced themselves for a fall in demand on the commodity markets. The price for the North Sea variety Brent slipped below $100 a barrel for the first time since April and cost around 3.5 percent less at $99.15. On Tuesday, the price collapsed by almost ten percent due to investors’ fears of a recession.
Speculations that interest rates would continue to rise in the US pushed the dollar higher. Of the dollar index, which measures the currency against other major currencies, climbed 0.6 percent to 107.18 points. Of the Euro depreciated by up to one percent and marked a 20-year low at $1.0161 for the second day in a row. “On the one hand, the obvious general conditions of rising inflation and geopolitical and economic upheavals caused by the war in Ukraine, including the impending energy crisis, are a burden,” said investment strategist Jürgen Molnar from the brokerage house RoboMarkets. “On the other hand, the high interest rate differentials between Europe and the USA are decisive. In the USA, interest rates have already been raised several times by the Fed, but not yet in the euro zone.”
About and Lose DoorDash
According to strategists, the slide below parity is getting closer for the euro. Most recently, the rate was less than one dollar in December 2002. That lb was about half a percent weaker at $ 1.1894 in view of the government crisis in London.
The reaction to the resignations of several ministers and state secretaries is still limited, said economist David Page of AXA Investment Managers. “However, the longer political uncertainty in the UK persists, the more we would expect it to make itself felt in UK financial markets.” Despite the protests, British Prime Minister Boris Johnson, who is under pressure, wants to continue his government work.
A partnership between Amazon and the food supplier caused a sensation GrubHub. The American online retailer is taking a two percent stake in the US subsidiary of Just Eat Takeaway and is offering its Prime customers free access to the service for a minimum order size for one year. The looming intensification of competition left the titles of GrubHub rivals DoorDash drop by more than seven percent. Shares in the ride-hailing agency Abovewhich also delivers meals with Uber Eats, fell 3.5 percent.
Rival Paper Excellence Group’s $2.7 billion takeover bid brought shares of Resolute Forest Products a record jump. They rose 63 percent to $20.45. Paper Excellence is offering $20.50 per share for the paper and wood products maker.
The titles of Rivian Automotive. Thanks to ramped-up production, deliveries from the e-car manufacturer almost quadrupled in the second quarter. “The most important thing for the stock right now is that investors have confidence in the 2022 guidance,” said Redburn analyst Charles Coldicott. The papers have lost almost three quarters of their value since the beginning of the year.