NEW YORK (Dow Jones) – After the price slump on Thursday, Wall Street recovered strongly at the end of the week and almost completely made up for the previous day’s losses. Black Thursday had seen the Dow Jones index fall 10 percent, the largest daily drop since the October 1987 crash. The indices have now registered the largest daily gain since 2008, keeping nervousness and volatility high. Because the negative factors of a widening corona pandemic and the negative effects on the global economy continued to be in focus and caused a massive withdrawal of investors from the stock markets over the course of the week.
Against the background of the corona virus that is also spreading in the United States, the United States President Donald Trump declared the national emergency. In the course of trading, corresponding speculation had caused Dow & Co’s profits to melt in the short term. Following the announcement, however, the indices shot ahead and practically closed at their daily highs.
However, there has been no progress in negotiations between Republicans and Democrats on a stimulus program for the United States. Treasury Secretary Steven Mnuchin said on a phone call to opposition Democrats that he was currently unable to recommend approval of a law, according to three people familiar with the matter. Mnuchin had previously said that an agreement was imminent. However, negotiations should continue.
The Dow Jones index climbed 9.4 percent to 23,186 points. On a weekly basis, however, there is a minus of more than 10 percent. The S&P 500 rose by 9.3 percent to 2,711 points and the Nasdaq composite rose by 9.3 percent to 7,875 points. There were 2,647 (Thursday: 70) price winners on the NYSE 377 (2,998) losers. 26 (3) shares closed unchanged.
On Friday, the Bank of Canada surprisingly got another one Rate cut determined by 50 basis points. It was only on March 4 that the central bank cut this by 50 basis points to compensate for possible negative effects from the coronavirus epidemic. Other global central banks have also recently launched monetary policy measures. But investors hope that government stimulus programs will have a supportive effect.
US consumer sentiment deteriorated in March, but the University of Michigan index remained slightly ahead of the forecast. US consumers play a key role in the US economy because around 70 percent of GDP depends on private consumption. However, the data had little impact on trading.
Adobe searched for numbers
In the sectors, bank stocks led the list of winners with an increase of 16.1 percent. The semiconductor values rose by 12.6 percent.
Adobe Systems increased its individual values by 17.7 percent. The software company beat market expectations in the opening period, but the outlook for the current quarter was weaker than expected due to the corona crisis.
In the third quarter, Oracle recorded the largest growth in around two years with sales growth of 1.9 percent over the previous year. This climbed to $ 9.8 billion, after $ 9.62 billion in the same period last year, the software company said. In the past six quarters, revenue had increased by less than 0.5 percent each. The stock gained 20.4 percent.
Broadcom gained 7.1 percent with the strong overall market, even though the semiconductor company had cashed in on its annual targets and had forecasted revenues that were expected by the market. The figures for the first quarter also failed to meet the forecasts.
Bonds are sold off
After the recent significant gains in the US bond market, prices were now down more sharply. The yield on ten-year paper rose by 19.7 basis points to 0.99 percent. If it weren’t for the liquidity and negative effects of the corona virus crisis, it could be taken as a logical step that the Fed will cut rates to zero, BMO Capital Markets said. In a way, it was “a return to the traditional response to Fed easing.”
After the recent massive levies, oil prices recovered at the end of the week, but trading remained very nervous. WTI rose 5.3 percent to $ 33.17, Brent increased 8.0 percent to $ 35.87. Nevertheless, the strongest drop since 2008 was posted by the week. The sentiment continued to be burdened by an increasingly clear global economic downturn and an impending price war between Saudi Arabia and Russia.
The gold price recorded levies for the fourth day in a row – on a weekly basis, they add up to around 9 percent. It is the biggest weekly loss since September 2011. Investors would continue to “sell everything,” said one participant. Emergency sales by investors who needed liquidity elsewhere also played a role, it said. Then there was the firmer dollar. The price of the troy ounce fell 3.7 percent to $ 1,519.
The dollar expanded its profits slightly as a supposedly “safe haven”. In turn, the euro slid to $ 1.1104 in late US trade, from $ 1.1177 late the previous evening.
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INDEX last +/-% absolute +/-% YTD
DJIA 23,185.62 9.36 1985.00 -18.76
S&P 500 2,711.02 9.29 230.38 -16.09
Nasdaq Comp. 7,874.88 9.35 673.07 -12.23
Nasdaq-100 7,995.26 10.07 731.61 -8.45
US bonds
Maturity yield bp to vt yield vt +/- bp ytd
2 years 0.53 5.7 0.47 -67.6
5 years 0.74 13.9 0.60 -118.4
7 years 0.95 19.5 0.75 -130.1
10 years 0.99 19.7 0.79 -145.5
30 years 1.56 12.8 1.43 -150.5
CURRENCIES last +/-% Fri, 9:20 a.m. Thu, 6:20 p.m.% YTD
EUR / USD 1.1104 -0.64% 1.1196 1.1577 -1.0%
EUR / JPY 120.13 + 2.54% 118.53 117.68 -1.5%
EUR / CHF 1.0579 + 0.11% 1.0579 1.0574 -2.6%
EUR / GBP 0.8994 + 1.21% 0.8871 0.8859 + 6.3%
USD / JPY 108.19 + 3.22% 105.88 105.46 -0.5%
GBP / USD 1.2344 -1.85% 1.2619 1.2594 -6.9%
USD / CNH (offshore) 7.0192 -0.11% 7.0044 7.0181 + 0.8%
Bitcoin
BTC / USD 5,419.76 -6.20% 5,418.76 6,162.01 -24.8%
ROHÖL most recently VT-Settl. +/-% +/- USD% YTD
WTI / Nymex 33.17 31.50 + 5.3% 1.67 -45.1%
Brent / ICE 35.87 33.22 + 8.0% 2.65 -44.6%
METALLE last day before +/-% +/- USD% YTD
gold (Spot) 1,519.19 1,577.48 -3.7% -58.29 + 0.1%
Silver (spot) 14.62 15.79 -7.4% -1.18 -18.1%
Platinum (spot) 755.85 773.40 -2.3% -17.55 -21.7%
Copper future 2.48 2.47 + 0.1% +0.00 -11.7%
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DJG / DJN / ros
(END) Dow Jones Newswires
March 13, 2020 16:33 ET (20:33 GMT)
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