After US House Speaker Nancy Pelosi's visit to Taiwan, Wall Street was relieved at China's comparatively moderate reaction. In addition, economic data ensure good mood. Paypal papers are particularly in demand.
Investors returned to Wall Street on Wednesday, buoyed by encouraging corporate results. The Dow Jones gained 1.3 percent to just under 32,813 points. The tech-heavy Nasdaq advanced 2.6 percent to 12,668 points and the broad-based S
Investors also reacted with relief to the relatively moderate reaction of the government in Beijing to the visit of US politician Nancy Pelosi to Taiwan, said Naeem Aslam, chief market analyst at brokerage firm AvaTrade. But China will hardly let the matter rest. The People's Republic regards Taiwan as a breakaway province.
Strong US economic data also boosted sentiment. The purchasing managers' index for the US services sector rose surprisingly. The growth in orders received by US industry was greater than expected at two percent. "Growth worries should tend to decrease against this background," said Helaba economist Ulrich Wortberg.
In this context, investors withdrew from US government bonds, which were considered safe. This drove the yield on 10-year bonds to 2.774 percent. Amplified ahead of selling pressure on statements by leading US Federal Reserve officials that another 0.75 percentage point rate hike in September was a possibility. Analysts at Mitsubishi UFJ bank appear to have gone too far for the Fed over recent speculation that the pace of interest rate hikes would slow.
The price of the US grade WTI went on a rollercoaster ride on the crude oil market. According to an OPEC document, the export cartel agreed to increase production quotas by 100,000 barrels per day. "It's so little it's meaningless," said Raad Alkadiri, manager at consultancy Eurasia Group. As a political gesture to US President Joe Biden, who had insisted on a significant expansion of production, it was almost an insult. However, a surprise rise in US inventories ended the interim WTI rally. By the evening, the price of the oil had dropped by three percent to $91.52 per barrel (159 liters).
Among the companies, PayPal stood out with a price increase of almost 14 percent to $ 101.95. This is the biggest price jump in more than two years. The payments processor had raised its profit targets on the back of surprisingly strong quarterly earnings and in response to the entry of hedge fund Elliott. Together with the savings and the share buybacks, the papers have bottomed out, predicted analyst Christopher Brendler from the research house DA. davidson Therefore, he reiterated his buy rating and price target of $120.
There were also beaming faces at Tupperware. The fresh food box maker made quarterly earnings of $0.41 per share - twice what it expected. Sales also surprised positively at $340.4 million. The company's shares then rose by up to 65 percent and recorded the second largest jump in the company's history.
