Wednesday, September 22, 2021
Fed cautious on rates
US stock market has recovered significantly
In the middle of the week, New York’s Wall Street looks much friendlier. On the one hand, the excitement surrounding China Evergrande has subsided a little; on the other hand, the Fed is sending cautious signals of relaxation. The energy sector and banking stocks benefit from this. A logistician, on the other hand, loses massively.
Wall Street showed a clear recovery on Wednesday. Concerns about systemic risks as a result of the distress of the Chinese real estate giant China Evergrande had subsided somewhat, which caused the share price to rise even at the beginning of the session. They increased their profits at times when the US Federal Reserve signaled after its interest rate meeting that it would gradually reduce its bond purchases from November onwards (“tapering”) and raise interest rates in the coming year. But this was widely expected, said market participants.
Of the Dow Jones Index gained 1.0 percent. Of the S&P 500 and the Nasdaq composite also improved by 1.0 percent each. 2662 (Tuesday: 1782) course winners were counted, compared to only 672 (1473) losers. 105 (146) titles went unchanged from the market.
The market was led by the energy sector, which rose by 3.1 percent in the wake of rising oil prices. Bank values in the past few days under the fear of default of the heavily indebted Evergrande suffered, recovered by an average of 2.1 percent.
A subsidiary of the Chinese real estate company announced that it would make a coupon payment on time this week. This gives the company some breathing space when it comes to reorganizing its capital structure. On the financial markets, however, it is expected that Beijing will ultimately intervene in order to prevent or greatly reduce secondary effects that could burden the country’s growth and thus the global economy. “We don’t yet know what this attempt to limit contagion will look like, but the market expects Beijing to act,” said Susannah Streeter, investment and market analyst at UK wealth manager Hargreaves Lansdown.
Fedex and Adobe by numbers easier
The logistics group Fedex earned less in the first fiscal quarter due to significantly higher labor costs. The company lowered its outlook for the 2021/2022 financial year. The share fell 9.1 percent.
the Adobe share lost 3.1 percent. The software company implemented and earned more in the third quarter than expected. This was thanks to the trend towards digitization, which was intensified by the corona pandemic. However, experts criticized the fact that the recurring sales were only slightly above the analyst consensus.
Draft kings shot 0.3 percent lower. The company has the bid for the British provider of betting and gambling Entain increased to 2800 from 2500 pence per share, 630 pence of which is to be paid in cash – the rest in Draftkings shares. In total, the bid has a volume of £ 16.4 billion.
According to the Fed, the dollar is picking up
Of the Dollar index According to the Fed statements, it increased by 0.2 percent. Of the Euro dropped to about $ 1.17. Before the resolutions were announced, it was around $ 1.1730 written down.
On the bond market, yields rose at the short end, which usually reacts more strongly to changes in monetary policy. For the ten and 30 year olds Treasurys In contrast, yields fell somewhat. Observers explained the generally relaxed reaction of the bonds with the fact that the Fed had not yet issued a formal tapering announcement. That was taken as a deaf signal on the market. In addition, fewer Fed representatives than expected had spoken out in favor of a rate hike in the coming year during the meeting.
gold initially gained a little more, but then fell back and trended a little lighter in late trading. Rising interest rates reduce the attractiveness of the interest-free precious metal. The stronger dollar also weighed on.
On the other hand, there was a strong upward trend with the Oil pricesafter the state Energy Information Administration reported an unexpectedly sharp drop in US inventories.