Renewed corona outbreaks in China are clouding investor sentiment. The crisis currency dollar, on the other hand, can gain. The winner of the day is the Walt Disney Group, which scores with a personnel decision.
The fear of an economic dampener due to the renewed increase in corona numbers in China is driving investors on Wall Street. The Dow Jones index of standard values fell slightly to 33,700 points. The broader S
Beijing's most populous district urged residents to stay home as the number of coronavirus cases in the city surged. In the port city of Guangzhou, a district was cordoned off for five days. The fear of an economic dampener due to tightened corona restrictions in the important trading partner China had previously slowed down the stock markets in Europe. At the start of the week, the Dax closed 0.4 percent lower at 14,380 points.
The gloomy prospects due to the flare-up of the coronavirus pandemic in the People's Republic and a report on a possible increase in production in the major oil-producing countries caused oil prices to temporarily slip to a ten-month low. According to a report in the Wall Street Journal, the OPEC export cartel is considering increasing oil production by up to 500,000 barrels per day. Brent crude oil from the North Sea temporarily fell by six percent to $82.31 a barrel, but quickly made up for most of the losses.
On the other hand, investors grabbed the dollar, which is considered a "safe haven" by stockbrokers. The dollar index, which reflects the exchange rate for major currencies, rose almost one percent to 107.84 points. "The outlook for China's zero-Covid market will remain a major source of volatility," said Carol Kong, currency strategist at the Commonwealth Bank of Australia.
In terms of individual values, Walt Disney shares jumped 6.3 percent. The entertainment giant announced that it would bring former CEO Bob Iger back to the top of the group from retirement. Iger, who stepped down last year after 15 years at the helm, is now said to help boost streaming services' profits.
"We applaud Disney's board of directors for having the courage to make this change," stated the experts from the analysis house MoffettNathanson and set the titles to "outperform" from the previous "market perform". In contrast, Tesla shares fell by almost seven percent. The vehicle manufacturer has to recall 321,000 electric cars in the USA because of problems with taillights.
