Tuesday, July 20, 2021
Cryptocurrencies under pressure
Wall Street is picking up speed again
The downward slide on Wall Street is over for the time being. According to experts, a crash like the one at the beginning of the week is seen as an incentive to get started. Only crypto currencies are struggling with losses.
After the disappointing start to the week, share prices in New York recovered strongly. The leading index Dow Jones Industrial rose 1.62 percent 34,511.99 points and thus made up for a large part of Monday’s losses. The rapid spread of the delta variant of the corona virus had triggered concerns among investors about the further economic development the day before. The Dow was down more than two percent. For the broad market S&P 500 it went up by 1.52 percent 4323.06 points upwards. The technology-heavy one Nasdaq 100 moved up 1.23 percent 14,728.21 counters in front.
Stagflation or the fear of it dampen the buying mood, however, said Neil Wilson, chief analyst of the online broker Markets.com. Experts use this term to describe a stagnating economy with rising inflation at the same time. “The growth momentum is already slacking off and the outlook is darkening because of the rising number of coronavirus cases,” added Wilson. “At the same time, prices are rising sharply.” After all, central banks could not resolve supply bottlenecks.
Investors, however, are betting that the US Federal Reserve will continue to buy bonds on a large scale for the foreseeable future. This depressed the Return of ten-year bonds to a low of 1.22 percent.
Because of the rampant delta variant of the corona virus, the world’s leading currency was also in demand as a “safe haven”. The dollarIndex, which reflects the exchange rate against major currencies, rose by as much as 0.1 percent to a three-and-a-half-month high of 92.92 points. In this context moved forward Immunomes into the spotlight. An antibody cocktail from the pharmaceutical company showed encouraging results in initial tests in the treatment of the Delta variant. The share jumped more than 9 percent.
Meanwhile, the sell-off in cryptocurrencies continued. Bitcoin fell 3.2 percent to $ 29,839 and fell below the psychologically important 30,000 mark for the first time in around a month. Ethereum lost 1.1 percent to $ 1,794. “There could now be a longer phase of consolidation before the next rally comes,” predicted market analyst Milan Cutkovic from the brokerage house Axi. “In the meantime, investors must accept that more regulation of this market is inevitable.”
The shares of IBM on the other hand increased by 1.5 percent. Thanks to a strong cloud business, the IT group had posted quarterly sales above market expectations. Investors would welcome this, commented the analysts at Berenberg Bank. However, IBM must also prove that the strategy will eventually bear fruit in the form of profits. The titles of Halliburton, which increased in price by a good 3.5 percent. The oil industry service provider increased its profit in a surprisingly strong quarter-on-quarter by a third to $ 227 million. The company owes this to its increased profitability, praised analyst Waqar Syed from the investment bank ATB. Sales were in line with expectations.
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