NEW YORK (Dow Jones) – Wall Street started trading with markups on Wednesday. Sentiment continues to depend on an agreement on a new US economic stimulus program. Republicans and Democrats are struggling to find a solution, but negotiations remain difficult. On Tuesday, share prices had turned into negative territory with no further progress – a development that could repeat itself. The market continues to expect an agreement.
“If there is no agreement, the markets can be expected to correct quickly,” says Intermediate Capital Group analyst Nicholas Brooks. A further lower number of new infections in the USA also has a supportive effect.
The Dow Jones index gained 1.0 percent to 27,961 points shortly after the starting bell. The S&P 500 is up 1.0 percent and the Nasdaq Composite is up 1.1 percent.
The published US economic data have so far had little impact. In July, inflation in the USA rose faster than expected, which was mainly due to higher energy prices. Consumer prices rose 0.6 percent from the previous month. Economists had only expected an increase of 0.3 percent. In the core rate, excluding the particularly volatile prices for energy and food, prices climbed 0.6 percent compared to the previous month. Economists had only expected a rate of 0.2 percent here.
Harris nomination should initially remain without market reaction
The nomination of Kamala Harris as a candidate for the office of Vice President should also be in the focus of the market. With her appointment, presidential candidate Joe Biden is slipping significantly further to the left on economic and tax issues, it is said. It is questionable whether the stock exchange has already priced in this risk in an election victory. However, this is precisely why other dealers see increased chances for a re-election of the US president Donald Trumpwhich would make the stock markets rise.
The analysts at UBS, however, do not expect any market reaction in the short term, because such a possible decision for Harris has already become apparent in the past few weeks.
Gold price with slight recovery – oil prices rise
Oil prices show themselves with gains. Data from the private American Petroleum Institute (API) had shown a decline of 4.4 million barrels. They are now waiting for the official data in the afternoon. Opec’s pessimistic statements, however, are not a burden. The coronavirus pandemic is likely to have an even worse impact on the global economy and its oil needs than previously expected, according to the monthly report. For 2020, a decline in demand of 9 percent compared to the previous year is expected. The price of a barrel of the US WTI variety rose 2.0 percent to $ 42.43, while Brent rose 1.8 percent to $ 45.31.
The gold price is recovering somewhat from the strong previous day’s taxes, with the lowest level in four weeks being marked in the meantime. With the faltering negotiations in the USA for another economic stimulus program, the precious metal is again benefiting somewhat from its status as a “safe haven”, it is said. The troy ounce rose 1.5 percent to $ 1,940.
The dollar cannot defend slight gains in the meantime. The dollar index is down 0.3 percent. With the US inflation data, taxes in the dollar increase slightly, and the euro has risen to $ 1.18 in the meantime. The main focus is on negotiations between Republicans and Democrats on an economic stimulus plan, it says.
US bonds will not remain in demand. The yield on ten-year stocks increases 2.4 basis points to 0.67 percent.
Tesla wanted with planned share split
In terms of the individual values, the Tesla share rises 5.4 percent. The US electric car maker wants to make its shares more tradable and more accessible for small investors. The group announced a 5-for-1 share split. The measure is expected to take effect on August 31.
Moderna titles gain 5.3 percent. The pharmaceutical company had announced a deal with the US government. The company will sell 100 million doses of its Covod-19 vaccine, which is still in development, for over $ 1.5 billion. In addition, the option to deliver more cans in the amount of 400 million was agreed. Studies with the drug candidate had recently shown success.
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INDEX last +/-% absolute +/-% YTD
DJIA 27.960,84 0,99 273,93 -2,02
S&P-500 3.365,35 0,95 31,66 4,17
Nasdaq-Comp. 10.898,24 1,07 115,41 21,46
Nasdaq-100 10.996,80 1,11 120,72 25,92
US bonds
Term of return Bp to VT Return VT +/- Bp YTD
2 years 0.14 -0.4 0.15 -105.7
5 years 0.28 1.0 0.28 -163.9
7 years 0.49 1.6 0.47 -175.8
10 years 0.67 2.4 0.64 -177.8
30 years 1.35 2.4 1.33 -171.4
Forex last +/-% Wed, 8:55 a.m. Tue, 5:11 p.m.% YTD
EUR/USD 1,1797 +0,46% 1,1732 1,1778 +5,2%
EUR/JPY 125,90 +0,65% 125,27 125,35 +3,3%
EUR/CHF 1,0750 -0,17% 1,0764 1,0781 -1,0%
EUR/GBP 0,9042 +0,51% 0,8995 0,8992 +6,8%
USD/JPY 106,72 +0,19% 106,78 106,47 -1,9%
GBP/USD 1,3046 -0,05% 1,3043 1,3096 -1,6%
USD/CNH (Offshore) 6,9345 -0,11% 6,9471 6,9408 -0,5%
Bitcoin
BTC / USD 11,487.51 + 1.68% 11,337.76 11,526.47 + 59.3%
ROHÖL last VT-Settl. +/-% +/- USD% YTD
WTI/Nymex 42,43 41,61 +2,0% 0,82 -26,6%
Brent/ICE 45,31 44,50 +1,8% 0,81 -27,0%
METALS last previous day +/-% +/- USD% YTD
Gold (Spot) 1.940,24 1.912,40 +1,5% +27,84 +27,9%
Silver (spot) 25.79 24.83 + 3.9% + 0.97 + 44.5%
Platinum (Spot) 939.25 933.50 + 0.6% +5.75 -2.7%
Kupfer-Future 2,87 2,88 -0,3% -0,01 +1,7%
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DJG / DJN / ros / raz
(END) Dow Jones Newswires
August 12, 2020 09:44 ET (13:44 GMT)
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