NEW YORK (Dow Jones)–Wall Street is likely to start trading on Tuesday with sales, thus continuing the previous day’s negative trend when the indices slipped into the red in late trading. The euphoria after the latest record hunt seems to have faded for now – also in view of the upcoming events this week. In addition to US Federal Reserve Chairman Jerome Powell’s hearing on Wednesday before the House Financial Services Committee, attention is primarily focused on the US labor market for February on Friday. If this continues to show robust job growth, a first Interest rate cut the Fed will not be on the agenda before the summer. The future on the S&P 500 is currently reduced by 0.3 percent.
Apple shares hit after weak iPhone sales in China
Apple could put a damper on the recent rally in the technology sector. In the first six weeks of the year, iPhone sales in China fell by 24 percent year-on-year, said research house Counterpoint. At the same time, Huawei increased its sales by 64 percent. After the EU fine of more than 1.8 billion euros imposed on Monday, this is the second piece of negative news for the group. Apple shares lost 2.1 percent premarket.
Boeing stocks fell 0.4 percent. Boeing allegedly failed to meet quality control requirements in production, according to an investigation by the US Federal Aviation Administration (FAA). The FAA further said that to hold Boeing accountable, it has halted production expansion of the company’s 737 Max aircraft and continues to maintain a local presence at Boeing and Spirit manufacturing facilities.
Tesla lose another 2.3 percent. After widespread power outages following an attack, production at the Grünheide plant in Brandenburg has come to a standstill. The police are checking a letter of confession. Tesla’s China sales also fell to 60,365 cars in February, their lowest level since the end of 2022. In January, the US company sold 71,447 cars and in December 94,139 units.
Oil prices continue to fall – gold prices at an annual high
Oil prices are showing slight declines, continuing the negative development of the previous day with slower momentum. Top oil importer China has set a target of 5 percent economic growth for 2024 – a goal that economists say will not be easy to achieve. “Reduced tax spending could limit China’s stimulus measures even as the government tries to stimulate the economy,” ING said. However, OPEC+’s extension of supply cuts amid signs of market tightening and concerns over stalled ceasefire talks between Israel and Hamas continued to support prices overall.
The dollar currently appears little changed after another setback on Monday. However, moderate gains in the meantime cannot be claimed. The Powell hearing on Wednesday and the US labor market report at the end of the week are likely to provide the next stimulus, it is said.
The price of gold is now climbing to a new annual high of $2,136 per troy ounce. It closed above $2,100 for the first time on Monday. “Concerns about the global economic outlook, geopolitical tensions and changing expectations regarding previous interest rate cuts have fueled demand,” said Ricardo Evangelista, analyst at broker ActivTrades. “US interest rates are the most important risk factor affecting gold prices.”
On the bond market, yields completely give up their previous day’s gains. It is said that the Powell statements and the labor market report are also being awaited here.
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US bonds
Maturity Yield Bp to VT Yield VT +/-Bp YTD
2 years 4.58 -2.2 4.60 16.0
5 years 4.17 -2.8 4.19 16.7
7 years 4.18 -4.4 4.23 21.2
10 years 4.17 -4.8 4.22 28.7
30 years 4.30 -4.9 4.35 33.3
FOREX last +/- % Tue, 8:07 am Mon, 18:19 % YTD
EUR/USD 1.0849 -0.1% 1.0849 1.0860 -1.8%
EUR/JPY 163.05 -0.2% 163.25 163.45 +4.8%
EUR/CHF 0.9609 +0.0% 0.9610 0.9605 +3.6%
EUR/GBP 0.8552 -0.0% 0.8557 0.8554 -1.4%
USD/JPY 150.28 -0.1% 150.49 150.50 +6.7%
GBP/USD 1.2686 -0.0% 1.2678 1.2697 -0.3%
USD/CNH (Offshore) 7.2125 +0.0% 7.2110 7.2082 +1.3%
Bitcoin
BTC/USD 67,902.94 -0.1% 67,170.81 67,040.24 +55.9%
CRUDE OIL most recently VT-Settlem. +/-% +/- USD% YTD
WTI/Nymex 77.85 78.74 -1.1% -0.89 +7.5%
Brent/ICE 82.09 82.80 -0.9% -0.71 +6.9%
GAS VT Settlem. +/- EUR
Dutch TTF 27.555 26.70 +3.2% +0.86 -20.2%
METALS last day previous +/- % +/- USD % YTD
Gold (spot) 2,126.53 2,114.52 +0.6% +12.02 +3.1%
Silver (spot) 24.01 23.90 +0.5% +0.11 +1.0%
Platinum (spot) 886.15 898.55 -1.4% -12.40 -10.7%
Copper future 3.85 3.86 -0.1% -0.00 -1.4%
YTD based on the previous day’s closing level
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(END) Dow Jones Newswires
March 05, 2024 08:25 ET (13:25 GMT)