Dow Jones closes in positive territory
China worries cloud the mood of stockbrokers
08/14/2023, 10:25 p.m
Chinese real estate giant Country Garden is in trouble, making Wall Street nervous. The forthcoming data on retail sales are eagerly awaited. The big winner is the steel company US Steel.
Important dates in the weekly calendar and gloomy news from China keep investors on Wall Street on their toes. The Dow Jones Index the standard values recorded a plus of 0.07 percent. The broader one S&P 500 increased 0.58 percent. The index of the technology exchange Nasdaq was up 1.05 percent. The dollar was in demand as a safe haven. The dollar indexwhich is calculated from a basket of six currencies, gained 0.28 percent.
Investors were particularly awaiting the release of the minutes of Wednesday’s Federal Reserve meeting, said Tina Teng, an analyst at brokerage CMC Markets. The US retail sales data due out on Tuesday will also be in the spotlight. “But the quarterly results of the big retailers like Home Depot and Walmart could also show us how the mood of the US consumer is,” said the expert.
Concerns about the state of China’s economy also weighed on sentiment. The troubled Chinese real estate giant Country Garden stopped trading in some of its bonds. “A crisis in China’s real estate sector is a story the market has heard before, and it doesn’t usually come with a happy ending for stocks,” said Russ Mold, a manager at brokerage firm AJ Bell.
Concerns about the Chinese economy weighed on oil prices. The light US variety STI fell 0.78 percent to $82.52 per barrel (159 liters). “The oil market has resisted expectations of a correction as investors have focused on economic optimism in the US while ignoring mounting headwinds in China,” said Vandana Hari, founder of Singaporean oil market research firm Vanda Insights.
The steel company US Steel has rejected a takeover bid by rival Cleveland-Cliffs, sending its stock on an upward trajectory. US Steel shares gained 36.75 percent. Cleveland-Cliffs had offered to buy the competitor for $7.3 billion. This corresponds to a premium of 43 percent on Friday’s closing price. title of Tesla slipped 1.19 percent. The electric car maker is continuing its self-initiated price war in the important electric car market in China and is reducing the prices for certain versions of its Model Y by almost $2,000 (14,000 yuan) from August 14th.