Levies on Wall Street
Profit taking after disillusionment
03/30/2022, 10:29 p.m
The initial optimism about any progress in the negotiations between Russia and Ukraine does not last even a day. Investors are cashing in on the US stock exchanges.
Profit-taking has shaped business on Wall Street. After reports the day before about progress in the ceasefire negotiations between Russia and Ukraine, disillusionment set in. Russia has not yet acted on the declared will to de-escalate. The attacks continued unabated. In addition, prices on the oil market rose more significantly again and fueled concerns about further increases in commodity prices.
the Dow Jones Index fell slightly by 0.2 percent to 35,229 points. For the broader S&P 500 was down 0.6 percent. The more tech-heavy Nasdaq Composite lost 1.2 percent.
In addition to the situation in the Ukraine war, some important economic data were in view. the ADP Labor Market Report turned out a little better than expected. It should give a preview of the official data for the month of March, which is due on Friday. The gross domestic product was slightly below the provisionally reported value in the fourth quarter at third reading, consumer spending and final demand were significantly lower. The core rate of the price barometer favored by the US Federal Reserve, the PCE deflator, matched the provisional value.
Micron shares turned negative over time after taking profits. The titles lost 3.5 percent, although the chip manufacturer presented strong business figures. Biontech (1.5 percent) reported a jump in sales and profits. The shareholders are to be given a special dividend, and the company also announced a share buyback.
Better than expected too PVH cut off. The mother of fashion brands like Calvin Klein and Tommy Hilfiger returned to profitability in the fourth quarter. However, the stock (down 6.5 percent) was unable to escape the profit-taking in the sector. The European industry representatives were also sold.
At the oil market prices recouped some of their recent losses. Like the US industry association API the previous evening, the state Energy Information Administration also reported a decrease in crude oil stocks. the dollar was further avoided. With the signs of relaxation in the Ukraine war, the US motto is currently no longer in demand as a safe haven. The dollar index fell 0.6 percent. The euro, meanwhile, was supported by surprisingly high inflation data from Germany and Spain. These support expectations that the European Central Bank will start raising interest rates this year in order to curb inflation.
At the bond market yields at the short end fell about the same as at the long end. The spread between 2-year and 10-year yields was just four basis points. The day before, two-year bonds had even briefly yielded higher than ten-year ones. This so-called inverted yield curve is considered a recession indicator.
gold meanwhile seems to have found a bottom after the setback of the past few sessions. In addition to bargain purchases, the weaker dollar should also have supported the price of gold, it said.