Wall Street starts the week with a bang. Investors are grabbing US equities in hopes that the Fed will be less of a rush to raise interest rates. The US papers of Chinese companies, on the other hand, are proving to be cash poison.
The US stock exchanges showed significant price gains on Monday. The Dow Jones index rose 1.3 percent to 31,499.62 points, its highest level since mid-September. The S
On the economic side, those of S
On Friday, an article in the Wall Street Journal supported that the Fed could refrain from the expected steep interest rate path. After two further rate hikes of 75 basis points each were expected so far, the second rate hike could be smaller at 50 basis points, the report said.
The dollar bounced back after weaker PMIs. It fell 0.1 percent against the euro, with the common currency suffering from weak European purchasing managers' indices. On the other hand, the yen showed a short-term massive recovery, since the Japanese side had apparently intervened in favor of their own currency, the yen. However, this movement did not last; the dollar quickly recouped most of its losses.
Yields increased slightly in the bond market. Against the backdrop of strong equity markets, weak PMIs provided little support for fixed income.
Oil prices eased slightly. The falling demand from China, where oil imports fell compared to the previous year, had a somewhat negative impact here. The main reason is the anti-Covid measures, participants said.
Among individual stocks, Wall Street-listed ADRs of Chinese companies came under pressure. This reflected concern about the composition of the new Central Committee of the CP, which is not considered to be business-friendly. Alibaba (-12.5%), Baidu (-12.6%), JD.com (-13%) and Pinduoduo (-24.6%) were weakly listed.
Tesla gave up 1.5 percent. The electric car maker has lowered prices for its products in China.
