Friday September 24th 2021
Bitcoin under pressure
Interest and evergrande dampen the desire to buy
The highly indebted group China Evergrande lets the date for an interest payment on a dollar bond pass without comment. This is noticeable on Wall Street. But other reasons are also causing restraint among US investors.
After the strong price gains of the previous two days, investors’ willingness to buy declined noticeably on Friday. Of the Dow Jones Index closed 0.1 percent higher. Of the S&P 500 also gained 0.1 percent. Of the Nasdaq composite ended the trade little changed. For 1,491 (Thursday: 2,139) course winners there were 1,783 (1,133) losers. 129 (158) titles closed unchanged.
Market participants cited the steady rise in bond yields over the past few days as one of the reasons for the reluctance of investors. The trigger was the announcement by the US Federal Reserve on Wednesday that it is expected to begin repaying its bond purchases in November. On Friday, the ten-year yield rose above 1.45 percent for the first time since the beginning of July.
Also the uncertainty about the future of the highly indebted Chinese real estate giant, which has recently abated somewhat Evergrande revived after the company apparently missed a deadline for interest payments due to US dollar bondholders on Thursday. However, many observers are convinced that a collapse of the group outside of China would only cause limited damage.
Investors also worried about the domestic dispute over raising the debt ceiling in the US. If there is no agreement here, the federal authorities are threatened with shutdown after the end of the budget year next Thursday. The spokeswoman for the House of Representatives, Nancy Pelosi, alleviated the fears by promising to prevent the dreaded “shutdown”. Surprisingly strong data on sales of new buildings in August do not set any accents in this mixed situation.
Nike very weak after lowering outlook
the Nike-Share was under pressure after the quarterly report was presented. The sporting goods manufacturer earned more than expected, but sales missed the consensus estimate. And because of problems in the supply chain, particularly in Vietnam, Nike has also lowered its sales outlook. The share lost 6.3 percent and also pulled the price of the sporting goods retailer Dick’s Sporting Goods (-2.8%) down. The competitor’s share Under Armor (+ 0.3%), after some initial losses, turned it into positive territory.
Against this Costco by 3.3 percent after the US wholesale chain exceeded market expectations with its fourth quarter business figures. Progress software (+ 14.9%) has exceeded the market forecasts with the business figures for the third quarter and raised the outlook for the financial year.
China pushes Bitcoin
Of the dollar gained against the euro. Participants referred to statements made by the President of the Federal Reserve Bank of Cleveland, Loretta Mester, who supported a start of tapering from the next monetary policy meeting and a rate hike next year. Against it stood Bitcoin and other cryptocurrencies under massive pressure after China ruled all cryptocurrency transactions illegal.
gold on the one hand benefited somewhat from the news situation about Evergrande, but was slowed down by the rising bond yields. Higher interest rates reduce the attractiveness of the precious metal, which does not generate any interest. the Oil price turned more clearly into the plus. They benefited from the decline in US oil stocks reported on Wednesday and lower oil production.