Relaxation in the Ukraine conflict
Fear is fading on US stock markets
02/15/2022 11:33 p.m
After Monday’s less than optimistic headlines, the threat of imminent war in Europe appears to have diminished somewhat. Relief is already spreading on the US stock exchanges. The anti-crisis currency gold is becoming cheaper, while investors with cryptocurrencies are again taking more risks.
Easing fears of a Russian invasion of Ukraine are drawing investors back to Wall Street. The US Standard Value Index Dow Jones closed 1.2 percent higher on Tuesday at 34,988 points. The tech-heavy one Nasdaq advanced 2.5 percent to 14,139 points. The broad one S&P 500 increased 1.6 percent to 4471 points.
“We are in a period of relief after the recent headlines on the Russia/Ukraine crisis,” said investment strategist Peter McCallum of investment bank Mizhuo. However, some investors remained cautious to avoid being caught on the wrong foot by unforeseen developments. According to stockbrokers, reports of a partial withdrawal of Russian troops from the Ukrainian border were particularly encouraging. At the same time, efforts to find a diplomatic solution to the conflict were in full swing. Against this background, some investors withdrew from “safe havens” such as the world’s leading currency.
This broke him dollar index, which reflects the rate against major currencies, dropped 0.4 percent. The “anti-crisis currency” gold fell by one percent to $1,852 per troy ounce (31.1 grams). US Treasury Bonds also came under selling pressure, pushing the yield on 10-year T-bonds up to 2.045 percent.
Other risky assets such as cryptocurrencies, on the other hand, were back in high demand. Bitcoin advanced four percent to $43,935 and Ethereum six percent to 3093 dollars. Investors therefore also boldly grabbed stocks from the cryptocurrency sector and companies that deal with the blockchain technology on which Bitcoin & Co is based. So the papers rose from Coinbase, Riot, Marathon, Overstock and Silvergate by up to twelve percent. The titles of the electric car manufacturer Tesla and the software company MicroStrategywho have invested billions in Bitcoin, advanced by almost seven percent.
On the other hand, the oil price fell due to a easing fear of supply disruptions. The US variety STI The barrel fell 3.7 percent to $91.93 a barrel after hitting a seven-and-a-half-year high of $95.72 on Monday. “In January, Russia exported almost 4.7 million barrels of crude oil per day,” calculated Commerzbank analyst Carsten Fritsch. “Should part of it be lost in the event of a military conflict and due to Western sanctions, this could not be easily compensated for.” In the wake of the falling oil price, the shares of corporations gave like exxon or chevrons up to 1.2 percent after.
At the companies advanced intel into the limelight. The chip manufacturer swallows the Israeli contract manufacturer for 5.4 billion dollars Tower Semiconductor. Its US-listed shares rose more than 40 percent at one point to a 17-1/2-year high of $47.47. The company is a bargain with a purchase price of 53 dollars per share, praised analyst Gus Richards from the investment bank Northland. In addition, Intel secures expertise in certain chips that are in particularly high demand. Intel shares are up 1.8 percent and the Philadelphia semiconductor index is up 5.5 percent.
With the titles of Marriott investors also grabbed it thanks to a surprisingly strong quarterly result. The strong figures underpin his forecast that the hotel chain will start paying out money to its shareholders again from the second half of 2022, wrote analyst David Katz from the investment bank Jefferies. Marriott shares rose as much as 5.8 percent to a record high of $181.34. In their slipstream, the rival’s stocks won hiltonthe airline delta and the online travel agency Expedia up to 7.5 percent.