Dow Jones closes in the red
China’s corona policy is making investors nervous
12/28/2022 10:42 p.m
China is the problem child on Wall Street after its turnaround in pandemic measures. Uncertainties about oil demand from Beijing are also depressing the mood. The tech courses are also feeling the effects.
Shortly before the turn of the year, US investors are only touching stocks with keen fingers. The main focus is on the exact consequences of the easing of the Chinese zero corona policy. Of the Dow Jones Index the standard values crumbled by 1.1 percent to 32,875.71 points. The broader one S&P 500 lost 1.2 percent to 3783.22 points. The index of the technology exchange Nasdaq fell 1.2 percent to 10,213.29 jobs. The Chinese special administrative region of Hong Kong is now lifting almost all corona protection measures.
On Monday, China announced that travelers would no longer be quarantined from January 8th. At the same time, the new corona rules have caused a wave of infections. “It’s the speed of change in China that has made people suspicious. The last two years in the People’s Republic have been a debacle,” said Thomas Hayes, manager at wealth manager Great Hill in New York.
The corona wave in China also left its mark on the crude oil market. The North Sea variety Brent fell 0.66 percent to $83.66 a barrel (159 liters), and US light oil STI fell 1.09 percent to $78.66 a barrel. That hit US energy companies. Marathon Oil stocks fell 2.8 percent to $26.88. competitors chevrons and Exxon Mobile each lost around one percent to 176.9 and 108.34 dollars. “The outlook for the oil market remains extremely uncertain,” Erlam said.
One has to wait and see in order to fully understand the exact effects on the number of infections, the economy and thus oil demand from China. However, positive sentiment prevailed in commodities on the prospect of a reopening of China. “After the rampant corona wave, there could then be an upswing in China. This is one of the reasons why attempts are being made to bottom out the recently severely shaken commodity prices,” said Jochen Stanzl, analyst at online broker CMC Markets.
Apple, Amazon and the Google parent alphabet fell between 1.3% and 3% after US Treasury yields turned positive again despite a brief decline. According to experts, rising inflation and higher interest rates will devalue the future profits of these high-growth companies.
the Southwest Airlinesshares came under pressure again, losing 5.16 percent to $32.19. The US Department of Transportation wants to investigate the large number of flights canceled by the airline. have at the same time Tesla– Stocks turned positive again after falling to a two-year low. The paper gained 3.3 percent to $ 112.71. On Tuesday, the US automaker’s papers fell by more than eleven percent due to concerns about production at the Tesla plant in Shanghai.