NEW YORK (Dow Jones) — After surging since the start of the week, Wall Street started trading slightly down on Wednesday. Participants speak of increased reluctance ahead of the US Federal Reserve’s eagerly awaited interest rate decision at 7:00 p.m. CET in the evening. This should set the direction not only for the further course of trading, but also for the coming days.
The Dow Jones index loses 0.1 percent to 32,536 points shortly after the opening. The S&P 500 is also down 0.1 percent and the Nasdaq Composite is down 0.2 percent. Important US economic data are not on the agenda before the interest rate decision.
“To raise or not to raise rates is the question that will dominate risk sentiment today as the Fed makes a decision on interest rates in the shadow of a banking crisis that seems basically already in the rear view mirror,” says CMC Markets UK . The majority of the market expects interest rates to rise by a further 25 basis points. A pause in interest rates, on the other hand, could be interpreted to mean that the banking crisis may be worse than previously assumed, according to one participant.
Dollar slightly down ahead of Fed decision
In the run-up to the Fed’s interest rate decision, the dollar is showing slight losses again. The dollar index falls 0.2 percent. Commerzbank analyst Esther Reichelt believes that the fact that a solution has been found for the time being, at least for the Swiss banking landscape, could make the US Federal Reserve’s work easier in the evening. Regardless, it will be a challenge for the Fed to strike the right balance between responsible concern and reassuring confidence.
Oil prices have changed little in the run-up to the Fed’s decision. The price of gold is stabilizing after the recent levies. On Monday, the precious metal had climbed to its highest level since April 2022 with a daily high of $ 2,015. The listings on the bond market are also treading water.
Nike after number ID with taxes
In terms of individual values, Nike shares lost 2.1 percent. The sporting goods manufacturer’s sales and profits exceeded expectations in the third fiscal quarter. However, the company struggles with high costs while discounts squeeze margins. Gamestop shares are up 38.1 percent. The retailer specializing in video games has reported a profit for the first time after seven quarters with a loss. The reason for this was significant cost reductions.
Diebold Nixdorf stocks are up 16 percent. The troubled ATM maker has secured $55 million in funding that the company hopes will help it meet its near-term goals.
The ailing First Republic Bank has hired more outside consultants. Lazard and McKinsey are to help the bank out of the crisis. The stock falls 5.8 percent.
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INDEX last +/-% absolute +/-% YTD
DJIA 32,535.56 -0.1% -25.04 -1.9%
S&P 500 3,997.33 -0.1% -5.54 +4.1%
Nasdaq Comp. 11,838.16 -0.2% -21.95 +13.1%
Nasdaq-100 12,725.45 -0.1% -15.99 +16.3%
US Bonds
Term Yield Bp to VT Yield VT +/-Bp YTD
2 years 4.21 +5.0 4.16 -20.8
5 years 3.75 +0.5 3.75 -24.5
7 years 3.69 -0.8 3.70 -27.7
10 years 3.61 +0.2 3.61 -27.1
30 years 3.73 -0.3 3.73 -24.1
FOREX last +/- % Wed, 8:16 Tue, 17:34 % YTD
EUR/USD 1.0783 +0.1% 1.0766 1.0771 +0.7%
EUR/JPY 143.00 +0.3% 142.61 142.46 +1.9%
EUR/CHF 0.9957 +0.3% 0.9937 0.9928 +0.6%
EUR/GBP 0.8800 -0.1% 0.8778 0.8834 -0.6%
USD/JPY 132.61 +0.2% 132.47 132.27 +1.1%
GBP/USD 1.2255 +0.3% 1.2261 1.2192 +1.3%
USD/CNH (Offshore) 6.8805 +0.1% 6.8889 6.8833 -0.7%
Bitcoin
BTC/USD 28,354.32 +1.0% 28,274.29 28,216.28 +70.8%
CRUDE OIL last VT settlem. +/- % +/- USD % YTD
WTI/Nymex 69.63 69.67 -0.1% -0.04 -13.5%
Brent/ICE 75.48 75.32 +0.2% +0.16 -11.6%
GAS VT Settlem. +/- EUR
Dutch TTF 40.55 42.40 -4.4% -1.85 -45.8%
METALS last day before +/- % +/- USD % YTD
Gold (Spot) 1,942.82 1,941.24 +0.1% +1.58 +6.5%
Silver (Spot) 22.36 22.38 -0.1% -0.02 -6.7%
Platinum (Spot) 991.35 975.70 +1.6% +15.65 -7.2%
Copper Future 4.03 3.99 +0.8% +0.03 +5.6%
YTD relative to previous day’s close
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(END) Dow Jones Newswires
March 22, 2023 09:42 ET (13:42 GMT)
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