At the beginning of the week, many investors did not dare to come out of cover. Wall Street oscillates between small gains and losses. Before a number of companies will present a wealth of figures in the coming days, many are still acting cautiously.
Wall Street has oscillated between small gains and losses. The Dow Jones index rose 0.3 percent to 31,990 points, the S
Investors acted cautiously, because on the one hand they have to process a wealth of company figures in the coming days, on the other hand the US Federal Reserve will announce the result of its interest rate meeting on Wednesday. A further interest rate hike of 75 basis points is considered agreed. Speculations about an interest rate hike of 100 basis points have largely disappeared from the market. Nonetheless, market participants fear that the Federal Reserve could stall the economy in its efforts to curb inflation.
Some of the annual reports and outlooks published so far in the reporting season have already shown signs of a downturn. However, coupled with weaker economic data, they also raise hopes that the Fed will slow the pace of monetary tightening. This ensured small gains on the stock market or kept the losses in check. Not much was happening on the company side at the beginning of the week either.
That will change in the coming days, when heavyweights such as Apple, Google's parent Alphabet, Facebook's parent Meta and Amazon, among others, will present business figures. They should decide whether the technology sector will continue its recent recovery. The Nasdaq Composite is down 24 percent year-to-date but is up 7.3 percent so far in July. In the current week, 175 companies from the S
The shares of the pharmaceutical manufacturers Siga Technologies and Inovia Pharmaceuticals recorded price gains of 29 and 5.2 percent respectively after the World Health Organization (WHO) declared the recent outbreak of monkeypox an international emergency. The business figures of the gold mine operator Newmont (-13.2%) were received with disappointment. Due to sharply increased costs, profits fell more than expected in the second quarter. After disappointing business figures caused Snap shares to collapse by a good 39 percent on Friday, analysts reacted with downgrades. The course tended slightly in the red.
Intel (-0.1%) did not benefit from the fact that Taiwan's Mediatek will use Intel's technology to manufacture smart devices. In the bond market, yields recovered after last week's setback. Meanwhile, the yield curve is still inverted, which is considered a recession signal. The dollar index fell 0.3 percent. Ebury strategist Matthew Ryan no longer believes the dollar has much potential for appreciation. He points out that some central banks have raised interest rates more than expected, which will probably not be the case with the US Federal Reserve.
While the Fed is likely to hike rates by 75 basis points on Wednesday, as widely expected, it is then likely to slow down and hike rates by 25 or 50 basis points, as in the past. The weakening dollar and the predominantly positive trend on the stock markets gave the oil price a tailwind. Observers also spoke of a counter-movement to the price declines on the oil market recorded so far in July. TTF gas prices rose in double digits after Russian gas company Gazprom announced a reduction in the volume of supplies flowing through the Nord Stream pipeline.
