Börse Express – New York Equities Outlook: Moderate recovery expected from a weak start to the week

NEW YORK (dpa-AFX) – The US stock markets are likely to open on Tuesday, partially recovered from the significant previous day’s losses. The broker IG valued Dow Jones Industrial
almost half an hour before the start of trading with an increase of 0.6 percent to 34 172 points. On Monday, the US leading index had lost around 1.8 percent. The technology-heavy selection index Nasdaq 100 is expected to start on Tuesday with an increase of around 0.5 percent.

Fresh US economic data had hardly any pre-trading impact on the indices. The chronic deficit in the US current account rose in the second quarter compared to the previous quarter by 0.9 billion US dollars and thus less than analysts expected. The development in the US construction industry surprised positively in August. While the number of newly started residential construction rose faster than expected, the number of building permits rose surprisingly and significantly.

Investors are now turning their attention to the meeting of the US Federal Reserve, which begins on Tuesday, and the results of which they hope to generate new monetary policy impetus on Wednesday. Christian Scherrmann, economist at the DWS fund company, does not expect any significant changes. The recent moderate recovery in the US labor market and the uncertainty surrounding the delta variant reduced the pressure to adjust monetary policy prematurely.

Among the individual stocks, US Bancorp stocks may be worth a look. MUFG Union Bank intends to take over the money house from Mitsubishi UFJ Financial Group for around 8 billion US dollars. Of this, 5.5 billion will flow in cash and the rest in US Bancorp shares. Upon completion of the transaction, Mitsubishi UFJ Financial will hold a minority stake of around 2.9 percent in US Bancorp. US Bancorp’s stocks rose 1.4 percent in pre-trading hours.

The shares of Johnson & Johnson gained 0.7 percent before the market. As the pharmaceutical and consumer goods company announced on the basis of a new phase III study, a booster dose of the Covid-19 vaccine from Johnson & Johnson offers one hundred percent protection against serious illnesses if it is administered two months after the first vaccination. A second study showed that the additional syringe increased the production of antibodies against Covid by twelve times when administered six months after the first dose. / Edh/zb

 ISIN  US2605661048  US6311011026

AXC0180 2021-09-21/15:14

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