Oil and gold prices rise
Dow and Nasdaq fragile after recovery rally
11/29/2022 10:46 p.m
The protests in China continue to weigh on US stock markets. While the Dow Jones is treading water, the Nasdaq indices are losing. Meanwhile, oil and gold prices are rising.
After the clearer losses on Monday, the US stock markets continued to fall, but only slightly. In view of the strong upward movement since October, the air is too thin for clear gains, it was said in the trade.
The negative factors were the same as the previous day: hawkish statements from US central bankers undermining market expectations of only a small 50 basis point interest rate hike on December 14th and the development in China. There, the protests against the tough Covid 19 containment measures have calmed down, but only because Beijing has apparently allowed them to be crushed.
On the other hand, the “optimized” measures announced by the Chinese health authority to combat Covid still left market players cold. Among other things, there should be no more inappropriate factory closures and production interruptions. Hong Kong’s Hang Seng Index jumped more than 5 percent.
Of the Dow Jones Index closed slightly higher with 33,852 points S&P 500 Lost 0.2 percent, which are considered to be more sensitive to interest rates Nasdaq indices fell somewhat more sharply by up to 0.7 percent. According to initial information, there were 1791 (Monday: 705) price winners and 1372 (2474) losers on the Nyse. 103 (96) titles closed unchanged.
Following the hawkish central banker comments, rising yields on the bond market had a braking effect. Reluctance was also caused by the fact that US Federal Reserve Chairman Jerome Powell will be making an appearance on Wednesday on the subjects of the economic outlook and the labor market. Especially after the recent hawkish-sounding statements from other central bankers, this date could be exciting.
Chemours and Unitedhealth weighed down by outlook
gave in the stock market Chemours by 1.3 percent. The chemical company expects adjusted operating profit to remain below the lower end of the targeted range and is now looking to cut costs.
unitedhealth ended the day 0.8 percent cheaper. The health insurer has provided an earnings outlook that’s slightly below Wall Street estimates for the next year.
UPS on the other hand, gained 2.8 percent after an upgrade to “buy” by Deutsche Bank. Analysts believe the market is too focused on sluggish volume growth and macroeconomic uncertainty rather than the package delivery company’s structural opportunities to boost its profits.
After the cruise provider Carnival had reported bookings for what is known as Cyber Monday that are 50 percent higher than the volume on Cyber Monday 2019, the stock went up 4.6 percent.
Kala Pharmaceuticals gained 0.3 percent after a volatile course. The company is raising $31 million through a private placement and will file for regulatory approval of a new compound.
Little movement in the foreign exchange market
On the foreign exchange market it went for the dollar overall sideways. He made up some ground against the euro over the course of the day. The fact that inflation in Germany was surprisingly lower than expected in November fueled speculation that the ECB would raise interest rates by just 50 rather than 75 basis points in December, and put slight pressure on the Euro.
the oil prices increased, WTI slightly stronger at 1.7 percent. In the trade there were rumors about an imminent cut in subsidies by Opec+. Of the gold price increased by half a percent.