Friday, July 16, 2021
Dow Jones closes in the red
Fear of inflation depresses Wall Street
After a slightly positive start, the US stock market indices will turn down for the weekend. Consumer confidence in particular is depressing sentiment on Wall Street.
The renewed fear of a premature tightening of US monetary policy is affecting Wall Street Dow Jones-Index ended the day with a minus of 0.9 percent to 34,688 points. The S&P 500 (4,327 points) and the Nasdaq-Indices (14,427 points) each lost 0.8 percent.
“Inflation puts pressure on the standard of living, especially that of households with lower and middle incomes, and leads to larger purchases being postponed in higher-income households,” said economist Richard Curtin, explaining the sentiment data.
Investors also sold US Treasuries. This drove the yield on trend-setting ten-year bonds to 1.305 percent. US retailer revenue rose 0.6 percent in June from the previous month. Experts had expected a minus of 0.4 percent. If the figures for the coming months are also above expectations, the US Federal Reserve has to ask itself whether inflation will really be as temporary as it thinks so far, said investment strategist Joe Perry of the online broker Forex.com.
In addition, the rising number of coronavirus cases gave stockbrokers a headache. Some US regions such as Greater Los Angeles have already announced the reintroduction of the mask requirement.
Meanwhile, the price of nickel rose as much as 2.3 percent to a five-month high of $ 19,205 a ton. A strong demand meets a short supply, said Commerzbank analyst Eugen Weinberg. In addition, investors feared delivery shortfalls due to the unrest in South Africa, an important export country. In addition, since inventories have recently fallen, the price will remain high.
For the shares of Moderna it went up by up to 10.3 percent. At $ 288.88, they were more expensive than ever. According to the index provider S&P Dow Jones Indices, the biotech company will be in the S&P 500 next week. The share price of the Biontech competitor has more than tripled in the past twelve months thanks to the high demand for its coronavirus vaccine. Also in demand were the papers of MoneyGram, which at times increased in price by around 3 percent.
According to the “Financial Times”, rumors are circulating that the financial investor Advent has had an eye on the company. The title of the operator Didi on the other hand, slipped 3.2 percent due to continued pressure from the government in Beijing. Chinese authorities say they have sent inspectors to the offices of the Uber rival to check how data security is being handled.
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