MARKETS USA / Wall Street starts trading more firmly 01.07.20

NEW YORK (Dow Jones) – Wall Street started trading at a premium on Wednesday. The strongest quarter had ended in 20 days on the previous day. The rapid recovery followed the massive slump due to the corona pandemic.

Shortly after the start of trading, the Dow Jones index gained 0.5 percent to 25,946 points, the S & P-500 traded 0.3 percent firmer, while the Nasdaq composite traded little changed.

The pandemic and its consequences for the global economy will remain the dominant issue on the stock markets in the third quarter. Investors continue to move between fears of further virus spread and hope of a quick economic recovery thanks to government support and an ultra-loose one Monetary policy of central banks.

Especially in the United States, the number of newly infected people is increasing rapidly. Some US states even have record numbers. On Tuesday, US medical officer and presidential advisor Anthony Fauci warned of a massive increase in infections. The number of new infections per day in the United States could increase from currently more than 40,000 to 100,000, said Fauci at a hearing in the US Senate.

The ADP labor market report was a surprise. Although the job growth in June at 2.37 million was slightly below the expectations of economists, ADP revised the May data to a job growth of around 3.07 million – previously a job loss of 2.76 million was reported. The data is considered an indicator for the US government’s official labor market report, which will be released on Thursday.

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The purchasing managers’ index for manufacturing, published by Markit, met expectations in June at 49.8 points. It is therefore only just below the expansion-indicating threshold of 50 points. The ISM index for the manufacturing sector will be published later. A significant improvement is also expected here. Data on construction expenditure for May is also on the agenda. At 8 p.m. CEST, the Fed minutes of the central bank meeting on June 9 and 10, respectively, will be published.

Oil prices supported by API data

Oil prices rise with the drop in US weekly inventories reported the previous day by the private American Petroleum Institute (API). Official data on oil reserves will be released in the afternoon. WTI grows 1.4 percent to $ 39.83 a barrel, Brent gains 1.0 percent to $ 41.67.

The dollar is running sideways on the foreign exchange market. The euro is trading at $ 1.1227 versus 1.1222 on Wednesday morning.

Gold is not in demand as a supposedly “safe haven”. The troy ounce is down 0.6 percent to $ 1,771. For bonds, the yield on ten-year US securities rose by 3.9 basis points to 0.69 percent as prices fell.

FedEx bullets on good numbers

Fedex jump up 16 percent. A boom in online orders during the Corona crisis gave the parcel service provider better-than-expected results in the fourth business quarter. The company spoke of an order volume like at Christmas time. There are also signs of a recovery in the global economy from the corona pandemic, according to the Fedex.

United Airlines win 9.4 percent. The airline will offer 60 percent fewer flights in August than a year ago. Since the demand for the Corona crisis is picking up again, the flight schedule for the month will be increased by 25,000 connections compared to July, the airline said. Compared to June, this corresponds to a tripling.

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INDEX last +/-% absolute +/-% YTD

DJIA 25.945,98 0.52 133,10 -9,08

S&P-500 3.110,05 0,31 9,76 -3,74

Nasdaq-Comp. 10.058,02 -0,01 -0,74 12,10

Nasdaq-100 10.147,78 -0,09 -9,08 16,20

US bonds

Maturity Yield Bp to VT Yield VT +/- Bp YTD

2 years 0.16 1.6 0.14 -104.2

5 years 0.31 2.4 0.29 -161.3

7 years 0.52 3.3 0.49 -172.8

10 years 0.69 3.9 0.65 -175.3

30 years 1.46 4.7 1.41 -161.1

CURRENCIES last +/-% Wed, 8:07 Tue, 17:35% YTD

EUR/USD 1,1227 -0,04% 1,1222 1,1244 +0,1%

EUR/JPY 120,72 -0,44% 120,76 121,20 -1,0%

EUR/CHF 1,0644 +0,04% 1,0624 1,0650 -2,0%

EUR/GBP 0,9038 -0,23% 0,9075 0,9081 +6,8%

USD/JPY 107,55 -0,38% 107,62 107,77 -1,1%

GBP/USD 1,2419 +0,17% 1,2367 1,2380

USD/CNH (Offshore) 7,0674 -0,04% 7,0736 7,0685

Bitcoin

BTC / USD 9.167.76 + 0.10% 9.126.01 9.163.76 + 27.2%

ROHOEL zuletzt VT-Settl. +/- % +/- USD % YTD

WTI/Nymex 39,83 39,27 +1,4% 0,56 -31,7%

Brent/ICE 41,67 41,27 +1,0% 0,40 -33,4%

METALLE last day before +/-% +/- USD% YTD

Gold (Spot) 1.771,19 1.782,05 -0,6% -10,86 +16,7%

Silver (spot) 18.14 18.18 -0.2% -0.04 + 1.6%

Platinum (Spot) 819.00 824.48 -0.7% -5.48%

Kupfer-Future 2,71 2,71 -0,1% -0,00

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Contact the author: [email protected]

DJG / err / raz

(END) Dow Jones Newswires

July 01, 2020 09:58 ET (13:58 GMT)

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