Monday, December 13, 2021
Tech values in particular suffer
Investors take cover on Wall Street
Wall Street investors are back in reverse after the recent gains. Technology stocks that are particularly sensitive to the economy are coming under pressure. In addition, at the beginning of the week, the fear of a sharper monetary policy can be felt again on the market.
Wall Street has come back more noticeably after the premiums from the week-end. Traders spoke of a “week of truth” with the central bank meetings of the Federal Reserve, the European Central Bank, the Bank of England and the Bank of Japan. Market players expect the US Federal Reserve to take a more brisk pace in tightening monetary policy.
This has been true since exorbitantly high inflation data of last Friday, which had reached their highest level since 1982, all the more so. The Dow Jones index lost 0.9 percent. The S&P 500 also fell 0.9 percent after closing at a record high on Friday. the Nasdaq Composite sagged by 1.4 percent. There were 1,084 (Friday: 1,581) course winners and 2,273 (1,763) losers. 147 (152) titles went unchanged from the market.
Growing nervousness about the impending monetary policy tightening and increasing concern about the spreading omicron variant of the coronavirus gained the upper hand, even if retailers said that fighting inflation was really necessary, because sustainable inflation rates at the current level should sooner or later also affect the economy and thus hit the stock market. It is expected that the Fed Ipek Ozkardeskaya, an analyst at Swissquote, said that it would accelerate the repayment of its bond purchases and possibly also see interest rate hikes earlier than previously assumed.
As a result, some categories of stocks are likely to fall in favor of investors who have previously benefited from the policy of cheap money. This includes the analyst, for example so-called meme stockswhich are unlikely to reach such high levels on their own in the coming months.
Movement in the pharmaceutical sector
Drew among the individual values Moderna by 5.8 percent, Pfizer and Biontech by 4.6 and around 8 percent. US chief medical advisor Anthony Fauci encourages Americans to get a Corona booster vaccination.
The UK government wants to ensure this for its citizens by the end of the year. at Pfizer also supported an upgrade from UBS, and from Pfizer and Biontech also a new study from Israel that demonstrated the effectiveness of the joint vaccine against the Omikron variant after the third vaccination. Arena Pharmaceuticals shot up 80 percent. Pfizer plans to take over the biopharmaceutical company, and the deal values the company at $ 6.7 billion. Novavax rose by 1.5 percent, the company has applied for emergency approval of its corona vaccine in the United Arab Emirates.
Bluebird Bio climbed by 6.1 percent, the biotechnology company came up with positive study results for a drug. Harley-Davidson wants to go public with its electric motorcycle business. The business called Livewire is to be merged with the empty shell AEA-Bridges Impact via a merger and thus brought to the trading floor. The titles of the legendary motorcycle manufacturer rose by 4.7 percent. Dollar tree lost 0.5 percent. The retailer argues with activist shareholder Mantle Ridge, who wants to replace the entire board of directors.
the Oil prices fell easily. The Kartell Opec had admitted that due to the Omikron variant, part of the assumed recovery in demand would be postponed to the first quarter of 2022. the Dollar index gained 0.2 percent. The greenback benefited from hopes of monetary policy tightening. On the bond market, yields fell more sharply, especially at the long end.
The distance between long and short term returns has recently decreased. This is a sign that investors feared that the US Federal Reserve could react excessively strongly to the high inflation with its monetary policy tightening and thus stall the economy, according to market participants. On the gold market, the price of the troy ounce was somewhat firmer.