Tuesday, May 25, 2021
Bitcoin and dollar under pressure
Gold is worth as much as it was last at the beginning of the year
Although Fed bankers can dispel concerns about inflation a little, US markets are closing weaker than the previous day. On the one hand, the sales figures for new buildings are weak, on the other hand, consumer confidence is not as good as expected.
The US stock exchanges went out of trading with minor losses. After share prices had risen sharply on Monday, weaker economic data dampened investors’ desire to buy. Both the new home sales data and the consumer confidence index had missed expectations. However, the data also reduced the likelihood of monetary tightening, which eased selling pressure.
The Dow Jones Index fell 0.2 percent to 34,312 points, the S&P 500 also lost 0.2 percent during the Nasdaq Composite Submitted 4 points.
Sentiment had brightened the day before because some Fed bankers took some of their horror from the current high inflation. The market was worried that high inflation could force the monetary authorities to reverse monetary policy.
Now representatives said they were not concerned about inflation. “The Fed bankers told the market exactly what it wanted to hear,” says strategist Hugh Gimber from JP Morgan Asset Management. It is encouraging that with all the volatility, the markets are focused on fundamentals.
Yields and dollars are falling
Bond yields fell again in response to economic data. “Tapering and rate hikes are moving further back,” said one trader.
On the currency market, the aftermath of the central banker’s statements from the previous day was evident in the dollar. When the risk of inflation was weighed down, the U.S. dollar under pressure because a turnaround in interest rates seems to have moved further into the distance. The Euro climbed above $ 1.2250 for the first time since January. The dollar index lost 0.2 percent. The Bitcoin got under the wheels again after a few days of increased volatility and fell by 2.7 percent.
gold trended firmer after the weaker economic data and climbed to its highest level since the beginning of January. Meanwhile stepped oil more or less on the spot. There was talk of reluctance on the market after the price had advanced significantly for two days in a row.
Amazon with additional purchases in the plus
Amazon closed 0.4 percent higher. According to informed circles, the online retail giant is approaching the acquisition of Hollywood studio MGM Holdings for almost $ 9 billion including debt. The acquisition was somewhat overshadowed by the news that the attorney general of the US capital Washington is bringing charges against the company. He accuses Amazon of abusing its dominant position.
Moderna benefited from statements by the pharmaceutical company that the Covid-19 vaccine has shown effectiveness in children between 12 and 17 years of age. For the titles it went up by 3.1 percent.
The air Line United Airlines is very popular with vacationers. United expects sales to decline by just 12 percent in the second quarter compared to 2019 after 20 percent previously. The share gained 1.5 percent.
Lordstown Motors collapsed 7.4 percent after the electric car maker revealed a cost problem in the first quarter. The company must therefore raise capital in order to be able to produce certain e-models. The loss of the startup in the first period increased significantly over the year.
Hydrofarm Holdings Group climbed 9.2 percent. Agricultural tools and supplies company is acquiring California-based nutrient manufacturer House & Garden for $ 125 million.
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