S&P 500 approaches record high: Buffett's entry boosts gold producers

At the start of the week, the price of gold on Wall Street is up sharply. One of the reasons for the increase in value is Warren Buffet. The investor legend helps gold mine operator Barrick Gold to jump in price with his entry.

Wall Street started the new week with a mixed trend. While the Dow Jones Index showed a slight minus, the S&P 500 again approached its record high from February with just a few points. The Nasdaq composite rose to a new all-time high. However, participants referred to the again quite low sales that are due to the vacation season in the USA. In addition, the strong recovery in prices since the lows in March has lost momentum in recent weeks, it said. The S & P-500 did not manage to mark a new record high in several attempts.

Of the Dow Jones Index decreased by 0.3 percent to 27,845 points, among other things, burdened by the clear minus of the Boeing share, which lost 3.4 percent. Of the S&P 500 increased by 0.3 percent to 3,382 points. Of the Nasdaq composite gained 1.0 percent to 11.x130 points.

Central topics were still the political struggle to continue the Corona aid and the tensions between the USA and China. Both sides had actually planned negotiations on the Phase 1 trade agreement concluded six months ago for August 15, but these were postponed indefinitely. In addition, the virtual party conference of the Democrats began in the USA, which lasts until Thursday. Joe Biden is due to be nominated as a presidential candidate there on Tuesday.

The Empire State Manufacturing Index for August fell to 3.7 points from 17.2 in July. Economists had expected an increase to 19.0 points. In the opinion of the Helaba market strategists, however, the decline should not be overestimated, because the index had recovered strongly in the three months before and is in the expansion range, which is why the overarching recovery scenario cannot be questioned.

Tesla continues to soar

The share of Barrick Gold rose by 11.6 percent. The holding company Berkshire Hathaway owned by investor legend Warren Buffett has invested in Barrick with the purchase of 20.9 million shares valued at approximately $ 564 million. The CurevacShare continued on its upward trajectory after making a dazzling stock market debut on Friday. The titles of the pharmaceutical company rose another 38.1 percent to $ 77.20. The issue price was $ 16. The company is researching a vaccine against the coronavirus.

The papers of Rackspace Technology climbed 10.3 percent. A Reuters report said Amazon wanted to acquire a minority stake in Rackspace. For the Amazon-Share was up 1.1 percent. The shares of Principia Biopharma rose 9.4 percent. The pharmaceutical company Sanofi has agreed the acquisition for a total enterprise value of approximately 3.36 billion dollars. The TeslaShares continued their recent soaring, breaking the $ 1,800 mark for the first time. The titles gained 11.2 percent to $ 1,836.

Investors are turning to government bonds

Oil prices rose sharply. Traders pointed to reports that the major Opec + oil producers last month complied with around 97 percent of agreed production cuts to offset the negative effects of the coronavirus pandemic. In the course of the week, Opec + will meet to talk about the gradual lifting of production volume reductions. The barrel US variety WTI rose 1.9 percent to $ 42.79. Of the BrentPrice increased 1.1 percent to $ 45.30.

Of the dollar-Index lost 0.3 percent. Of the Euro in contrast, rose to $ 1.1871 in late US trade. Commerzbank sees US foreign policy, which is increasingly relying on sanctions, as a burden on the dollar. The analysts at Societe Generale said that the euro had actually already run too high against the background of increasing corona case numbers in Europe.

gold recorded the largest daily gain in four months. Participants justified this primarily with the weakening dollar. In addition, Berkshire Hathaway joined Barrick Gold, the world's second largest gold mine operator. The price for the Troy ounce rose 2.0 percent to $ 1,984.

The upcoming Democratic party convention made security-conscious investors resort to government bonds. There are fears that an agreement between Democrats and Republicans on further corona aid will be delayed as a result of the party congress, it said. The ten-year yield fell 2.4 basis points to 0.68 percent.