Energy stocks gain points
Wagner uprising unsettles investors
06/26/2023, 10:12 p.m
Market traders are waiting for a sign from the US Federal Reserve, as there is still uncertainty as to whether there will be a rate hike at the end of July. In addition, the attempted rebellion by the Wagner group of mercenaries against the Kremlin is making investors nervous.
Geopolitical concerns after the mercenary rebellion in Russia and the expectation of new economic data later in the week have made US investors cautious. The Dow Jones Index the standard values were hardly changed in New York at 33,741.71 points. The broader one S&P 500 decreased by 0.45 percent to 4328.82 points. The index of the technology exchange Nasdaq fell 1.16 percent to 13,335.78 jobs. Investors awaited further developments in Russia after the aborted mercenary uprising.
They are also hoping that the economic data planned for the next few days will provide clues as to the next rate hikes by the US Federal Reserve. The calendar includes data on US gross domestic product. “The way investors buy or sell now will depend on the expectation of whether there will be a rate hike later next month,” said Randy Frederick of brokerage firm Charles Schwab. “Therefore, any economic numbers we get by then will have an impact on the stock market.”
The ruble fell to a 15-month low at times during the day. The Russian national currency, which was not traded on Saturday and Sunday, stabilized at 85.08 against the US dollar in the afternoon. In early trade, the ruble was at 87.23, the weakest since March 2022. “The peak of tensions has passed, but the bad mood will remain for some time,” said Alexei Antonov of Moscow broker Alor.
Lucid shares are up
On the oil markets, fears of supply because of the unrest at the world’s third-largest producer have meanwhile given prices a slight boost. The North Sea crude oil variety Brent and the light US variety STI rose to $74.4 and $69.4 a barrel, respectively. The rise in price supported the shares of the energy companies. Industry giants like Exxon Mobil, Chevron and Marathon Oil gained between one and 1.85 percent. Geopolitical concerns are also encouraging investors to invest in what are considered “safe haven” assets such as gold and government bonds.
In terms of individual values, the attempted mercenary uprising sent shares in the armaments companies plummeting. So crumbled Raytheon by 0.36 percent. The industry has benefited from increased military and security spending by several countries following the start of the Ukraine war. According to analysts and traders, the events of the weekend showed that Russian President Vladimir Putin could be weakened. From the depots also flew Pfizer. The share certificates of the pharmaceutical company lost 3.66 percent. He also announced that he was halting development of his obesity and diabetes drug Lotiglipron after patients were found to have high levels of liver enzymes during the clinical trial. Pfizer wants to further develop another remedy for obesity.
Skeptical analyst comments after the recent one Tesla-Rally hit the stock. The US electric car maker’s stocks fell more than six percent after rising more than 50 percent over the past two months. Goldman Sachs experts have downgraded the stock to neutral from a previous buy amid margin concerns. In contrast, the shares of Lucid, which increased by 1.74 percent. The sports car manufacturer Aston Martin wants to develop luxury electric vehicles with the US electric car manufacturer in the future.