Dow Jones closes in the red
Slight losses on the New York Stock Exchange
03/28/2023 10:46 p.m
After a good start to the week, the price recovery is already over. The latent uncertainty of investors with a view to the further action of the US Federal Reserve is slowing down the stock exchanges.
Wall Street closed at a slight discount. Despite the easing in the banking sector, investors remained cautious. The Dow Jones Index closed 0.1 percent lower at 32,395 points. For the S&P 500 was down 0.2 percent. The Nasdaq Compositee was down 0.4 percent. There were a total of 1,770 (Monday: 2,235) price winners and 1,223 (787) losers. 106 (115) titles closed unchanged.
Uncertainties remained, it said. It is clear that the banking crisis will have long-term effects on the economy. In addition, attention is again increasingly directed to possible further interest rate hikes by the US Federal Reserve to combat inflation. Fed funds futures showed many traders expect the Fed to hold off on raising interest rates at its next meeting, which is scheduled for the first week of May. However, given that inflation remains well above the Fed’s target, that assumption could be wrong, according to Andrew Hollenhorst, US chief economist at Citigroup.
According to Goldman Sachs chief economist Jan Hatzius, the likelihood of a recession in the US has increased as a result of the turbulence in the banking system – but only from 25 to 35 percent. “This number remains well below the consensus of 60 percent,” wrote Hatzius in a comment. On the economic side, US consumer sentiment improved in March. The consumer confidence index rose to 104.2. Economists had expected a reading of 100.7.
Dollar continues to weaken – oil prices slightly firmer
In the currency market, the dollar continued its downward movement since the beginning of the week. The dollar index fell 0.5 percent. The currency experts at MUFG Bank emphasized that the improved global risk sentiment is reducing the demand for safe investments. An expected tightening of credit conditions following the recent problems in the banking sector has prompted the market to lower its expectations for future US interest rate hikes.
The sharp correction in US yields leaves the greenback vulnerable to further weakness. At the US bond markett the listings fell a little further as the situation in the banking sector eased. After the strong premiums of the previous day, the yield on ten-year paper increased by a further 1.6 basis points to 3.55 percent. Yields on two-year paper rose back above the 4 percent mark.
After the significant upward movement on the previous day, oil prices rose slightly. The prices for the varieties STI and Brent increase by up to 0.9 percent. There are rumors in the market that the US government is buying oil to replenish the country’s strategic oil reserves, it said. Brent had started the week marking its biggest daily gain in about three months, helped by easing in the banking sector. The turbulence had previously fueled concerns about an economic downturn.
The gold price showed a slight recovery after the most recent levies. The price of the troy ounce rose by 0.9 percent. Most recently, the significantly increased bond yields had a negative impact.
Lyft papers fell 7.6 percent
In the individual values it went for the Alibaba stock up 14.3 percent. The Chinese e-commerce giant plans to reorganize itself into six divisions that will ultimately be able to raise capital and go public on their own. The company will focus on cloud intelligence, local services, logistics, digital media, entertainment and commerce businesses.
The pharmacy chain Walgreen’s Boots Alliance earned and implemented more than expected in the second quarter of the 2022/23 financial year. The Group has confirmed its outlook for the year as a whole. The stock rose 2.7 percent. The Lyft Papers fell 7.6 percent. The Wall Street Journal had reported that the two founders of the transportation service provider were retiring from day-to-day operations and that David Risher, a board member since 2021, was taking over. The previous leader, Logan Green, and the current president, John Zimmer, will retain their seats on the board.
PVH made a jump of 20.0 percent. The clothing company with brands such as Calvin Klein and Tommy Hilfinger had presented fourth-quarter figures at the end of January that exceeded expectations for sales and, in particular, significantly for profit.