Hope for new help: US stock exchanges feed on Yellen's words

Tuesday, January 19, 2021

Hope for new help
US stock exchanges feed on Yellen's words

At her hearing in Congress, the future US Treasury Secretary Yellen promised new economic aid. On the stock market, this raised further hopes of an economic recovery.

After the long weekend in the US, buyers have set the tone on Wall Street. The US Standard Values ​​Index Dow Jones closed 0.4 percent higher to 30,930 points. The technology-heavy one Nasdaq advanced 1.5 percent to 13,197 points. The broad one S&P 500 gained 0.8 percent to 3798 points.

Stockbrokers followed the hearing of the designated US Treasury Secretary Janet Yellen in the US Congress, where she campaigned for the planned additional trillion dollar economic aid. Yellen wants to use the low interest rates to put together a big package to help the economy to a strong recovery, said Thomas Hayes, manager at asset manager Great Hill. "The market likes that."

The economic optimism was also reflected in the oil price. According to stockbrokers, crude oil investors are betting on demand picking up again in the medium term. The US variety WTI The price rose by a good one percent to $ 52.96 per barrel (159 liters). In their slipstream, stocks from oil companies like Exxon and Chevron about two percent each.

New fantasy among GM investors

Meanwhile climbed Ethereum on the Bitstamp exchange by almost 15 percent to a record high of $ 1,440. The two most important cryptocurrency is benefiting from the recent Bitcoin soaring and the plans of the US exchange CME to issue a futures contract on this digital currency from February, said analyst Timo Emden from Emden Research. Bitcoin remained within striking distance of the record high of just under 42,000 euros at a rate of $ 37,211.

The world reserve currency, however, came under pressure. The prospect of a global economic upswing makes it less attractive as a "safe haven", said analyst Ricardo Evangelista of the brokerage firm ActivTrades. The Dollar index, which reflects the exchange rate to major currencies, lost 0.3 percent.

At the stock values ​​stood Goldman Sachs and Bank of America in the spotlight. Both financial institutions presented business figures above market expectations. Nevertheless, the papers went on a rollercoaster ride. Goldman Sachs stocks slipped 2.3 percent after initial gains. Bank of America went 0.7 percent lower from trading. "These stocks need a breather," said Great Hill expert Hayes. In the medium and long term, however, they are undervalued.

The titles of Halliburton were also only able to temporarily convert positive business figures into price gains. They fell around one percent. Sales and operating profit of the oil industry supplier were above the analyst forecasts, wrote analyst Waqar Syed of the investment bank ATB.

The shares of General Motors shot up almost ten percent. The carmaker's subsidiary Cruise wants to develop self-driving vehicles together with the Microsoft software group.