PARIS (Reuters) – The New York Stock Exchange opened in disarray on Monday, with investors focusing on negotiations between Russia and Ukraine, with banking stocks benefiting from rate hike expectations at this meeting. US Federal Reserve week.
About ten minutes after the first exchanges, the Dow Jones index gained 77.89 points, or 0.24%, to 33,022.08 points while the wider Standard & Poor’s 500 fell 0.07% to 4,201 ,3 points.
The Nasdaq Composite lost 0.54%, or 69.744 points, to 12,774.064 points.
Even if the fighting continues in Ukraine, kyiv wants to obtain a ceasefire, the immediate withdrawal of Russian troops as well as guarantees on its security during the new round of talks which opens on Monday.
Even if no progress is currently perceptible, the Russian and Ukrainian negotiators were cautiously optimistic on Sunday on the outcome of the talks, which seems to calm the nervousness of the market a little.
The volatility index, also called the fear index, is practically stable, even if it is still moving above 30 points.
In addition to the war, presented by Russia as a “special operation”, investors are focusing on the decisions of the American Federal Reserve, which is expected to raise its interest rates by 25 basis points on Wednesday, at the end of its meeting. , which should, according to analysts, pave the way for a cycle of rising credit costs.
In values, Bank of America gained more than 2% in the wake of the yield on ten-year Treasuries bonds which reached its highest level since July 2019 at 2.10%. The index of banking stocks advances by 1.7%.
The decline in the oil market with renewed optimism over the Russian-Ukrainian conflict is weighing on Chevron, Exxonmobil, Marathon Oil and even Occidental Petroleum, which are dropping 2.5% to 5%. Brent is trading at 107 dollars a barrel against a peak of nearly 140 dollars on March 7.
Apple fell 1.4% after the suspension of activities of its supplier Foxconn in the Chinese city of Shenzhen, due to a surge in the number of new cases of contamination by the coronavirus.
Casino operators such as Vegas Sands (-5.6%) or Wynn Resorts (-3.5%) are, for their part, affected by health restrictions in several Chinese provinces.
(Written by Claude Chendjou, edited by Jean-Michel Bélot)
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