After a surprising US rate cut
Tuesday the New York stock indices are heading down
taken. The market fluctuated strongly in early trading,
Indecisiveness shaped the event. Then the drifted
Courses clearly in the red. The leading index Dow Jones Industrial
closed 2.94 percent lower to 25 917.41 points. At the
The day before he had won more than 5 percent and a large part
the losses made up by the sell-out of the previous week.
Because of the dangers to the economy from the outbreak of the new one
Coronavirus, the US Federal Reserve had the key interest rate around 0.50
Percentage points lowered. The Fed did not succeed in doing that
Alleviate market worries. On the contrary, the opposite happened.
Fed chief Jerome Powell said it was recognizable that that
Corona virus already affects the growth of many countries and
the global financial markets. The extent of the impact on the
However, the US economy is still “highly uncertain”.
The broad S&P 500 slipped 2.81 percent
3003.37 points. For the technology-heavy Nasdaq 100
it declined 3.19 percent to 8594.49 points.
The uncertainty about the unpredictable consequences for the
Corona virus economy is still great. Secure
Ports were searched again. The yield on the US bond market fell
of ten-year papers temporarily below 1 for the first time
Percent.
Market participants had already partially cut interest rates on the
List. That this now took place in an unscheduled action
like last time in 2008 after the Lehman bankruptcy, but I did
surprised, it said. The measure might be more of a concern
Firing worse instead of calming down. Some criticized
moreover, the Fed is hanging on the hook of the markets. This is how the experts spoke
by Vontobel Asset Management from a very aggressive measure
the Fed. You gave in too early to the market. It
seem as if the high market fluctuations have united the Fed
Reaction forced, which is anything but healthy.
Thomas Gitzel, chief economist at Liechtenstein’s VP Bank,
however supports the measure: “Before the financial markets and the
Fed suffer more damage, the Fed intervenes and
misses the US economy a flu shot. That testifies to
an energetic approach to any sharper ones
Economic risks. “
Among the individual values, the papers lost the bottom in the Dow
from the American Express credit card company 5.15
Percent. The previous evening, rival Visa Inc his
Investors on lower sales growth in the second quarter
attuned. The growth rates have changed since the outbreak of the new one
Coronavirus worsens week after week. The Visa titles surrounded
3.43 percent after.
JPMorgan lost 3.75 percent. Rate cuts
are bad for banks and weigh on their earnings.
Interest income, for example from lending and money market transactions, mostly falls
less exuberant. The only Dow value was up 0.25 percent
Coke ,
Thermo Fisher Scientific shares won 1.77
Percent. After some struggle, the US technology group wants that
Genetic diagnostics and biotech company Qiagen for around
Swallow 10 billion euros. Thermo Fisher offers that
Qiagen shareholders 39 euros per share. So the offer is almost 23
Percent above Monday’s closing price. Those listed in New York
Qiagen shares jumped around 15 percent.
The US rate cut drove the euro temporarily over 1.12
U.S. dollar. After the US market closed for
Community currency paid $ 1.1179. The European
Central bank (ECB) previously had the reference rate at 1.1117 (Monday:
$ 1.1122). The dollar was 0.8995
(0.8991) euros. Trend-setting trends rose on the US bond market
ten-year government bonds last by a whole and 19/32 points
to 104 24/32 points. They paid 0.996 percent./ajx/fba
— By Achim Jüngling, dpa-AFX —
ISIN US2605661048 US6311011026 US78378X1072
AXC0384 2020-03-03 / 22:38
Copyright dpa-AFX Wirtschaftsnachrichten GmbH. All rights reserved. Redistribution, republication or permanent storage without the express prior consent of dpa-AFX is not permitted.
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