The worst week since the 2008 financial crisis ended on Wall Street in New York. Seen over the week, the Dow Jones lost about 17 percent. Massive cash injections initially dampen uncertainty. However, many investors assume that the worst is not over yet.
The one launched on Thursday Rest on Wall Street has collapsed today after an initial sequel. In one again very volatile trade On the big expiry day, the early gains were already fragile and were finally lost when the news ran through the ticker that the governor of New York called on workers to stay at home as soon as possible.
This should have shown many investors once again how precarious the situation around the coronavirus crisis is, and at the same time increased the tendency to play it safe and close positions before the weekend.
In the end the Dow Jones index so with 19,174 points and thus 4.5 percent in the red. Compared to the previous week’s closing, the index slumped by over 17 percent during the week. The S&P 500 fell again after the weak intermediate recovery on Thursday by 4.3 percent, the Nasdaq indices lost about 4 percent each. There were 1,313 (Thursday: 2,314) course winners and 1,710 (719) losers on the NYSE. According to initial information, 29 (21) shares remained unchanged.
The various measures of Federal Reserve and other central banks to combat the economic consequences of the Corona pandemic thus only provided some temporary confidence. Among other things, the US Federal Reserve had additional ones on Thursday Bond purchases announced and facilitated access to dollar liquidity in several countries. The Bank of America calls for the US Federal Reserve to buy corporate bonds with good credit ratings in addition to government bonds in order to calm the market.
In the end, such bonds were also sold because many investors had fled to liquidity. This had caused yields on the bond market to rise sharply. Also the massive government spending programs could not calm the minds in view of the rapidly increasing number of infected people. Among other things, Mitch McConnell, who leads the Republican majority in the Senate, has one on Thursday Stimulus package , which could have a volume of over $ 1 trillion and also includes direct payments to US citizens.
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It was dramatic again Oil market to. The price of the US grade WTI broke up by over 8 percent $ 23.84. IHS Markit’s analyst Marshall Steeves justified the recent slump with an expected sharp drop in demand given news of curfews and travel warnings.
In addition, Saudi Arabia continues to flood the oil market in the dispute with Russia over cuts. Nonetheless, Brent oil held up much better with one Minus of just under 4 percent. Here, the announcement by the USA could have supported the intervention in the price war between Russia and Saudi Arabia if necessary. The US oil is thus down 29 percent on a weekly basis, that’s the sharpest decline since 1991.
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The dollar came back after the strong gains in the course of the week so far, but the mood turned again in the course of trading and the dollar index recently showed a gain of 0.1 percent. The Euros cost $ 1.0666 and went into the weekend near the day’s low.
In the US bond market, the recently sharp rise in yields fell significantly. The announced additional bond purchases by the US Federal Reserve may have played a major role here. The ten-year return dropped 26 basis points to 0.89 percent.
Gold made up some ground again.
The troy ounce rose by 1.4 percent to $ 1,4891. Some actors have used the recent drop in prices to re-enter, it said. The gold price, which was trading at a multi-year high just above $ 1,700 just two weeks ago, has moved away from it by around $ 200. The somewhat lighter dollar also supports the gold price.
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Lost on the stock market Walmart after a positive start 4.6 percent. While layoffs are at risk in many companies, the retail giant is benefiting from them Hamster purchases of the Americans in the Corona crisis. Walmart therefore wants to pay its employees bonuses and hire up to 150,000 additional staff for a limited period.
AT&T buckled 8.7 percent on. The telecom company has canceled a recently announced share buyback program due to the pandemic. In this way, A&T wants to improve its own financial flexibility.
The course of Genmark Diagnostics jumped 30 percent after the FDA approved an accelerated test by the diagnostics specialist for the coronavirus.
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