NEW YORK (Dow Jones) — After the previous day’s rally at the start of the new quarter, the shares are again clearly up on Tuesday. As of midday (New York time), the Dow Jones index is up 2.6 percent to 30,243 points, the S&P 500 is up 2.8 percent and the Nasdaq composite is up 3.2 percent. Participants point out that the fourth quarter is seasonally particularly strong and that a countermovement is not unusual after the extremely weak September.
Above all, there is hope that central banks will be less aggressive in raising interest rates. Jim Reid, strategist at Deutsche Bank, points to the oversold situation in the stock markets, “but the most important factor is the increasing speculation that central banks could soon turn to a more dovish stance, especially after the market turmoil of the past few weeks.”
Supporting this speculation was a weak ISM manufacturing index on Monday, which Barclays said showed easing cost pressures amid lower delivery delays and lower backlogs. The ISM index “gave a positive impetus to the market,” says Ipek Ozkardeskaya, senior analyst at Swissquote Bank. “I believe this is an important sign that, despite the Fed’s highly hawkish rhetoric, many investors no longer believe the Fed will continue tightening at the current pace. This bodes well for a recovery in global markets “, adds Ozkardeskaya.
Australia’s central bank surprised
In addition, the Reserve Bank of Australia posted a lower-than-expected rate at Tuesday’s meeting rate hike by 25 basis points, which helped equities in Asia rise and bond yields fall.
The bond market moves up in tandem with stocks. Here also supports the hope of a milder one monetary policy the US Federal Reserve. The 10-year yield falls 1.6 basis points to 3.62 percent.
The dollar weakens as participants speculate on lower interest rate hikes and as risk appetite increases in general. The dollar index loses 1.2 percent, the euro is back above $0.99 and is approaching parity.
Oil prices are again increasing significantly with the expectation that Opec+ will reduce production. The day before, things had risen sharply with reports that the organization was planning a reduction of over a million barrels a day.
Gold prices are benefiting from the weaker dollar and expectations of a less hawkish US Federal Reserve. The troy ounce climbed 1.5 percent and traded above $1,700.
In terms of individual values, Poshmark increased by 13.3 percent to $17.65. The online marketplace sold itself to the South Korean Internet group Naver for $1.2 billion. This gives Poshmark a valuation of less than half what it was when it went public in early 2021. Naver is paying $17.90 per share in cash.
Aeroclean recorded a 35 percent price explosion. Fusion plans fuel here. The air purification expert wants to join forces with the provider of air purification systems Molekule in a share swap. Both companies estimate the addressable market for their business at $15 billion.
FedEx increased by 4.4 percent. The logistics group, which recently issued a profit warning, has now announced the accelerated buyback of shares with a volume of 1.5 billion dollars.
Rivian, a maker of electric commercial vehicles, sold fewer units than expected in the third quarter but is sticking to its annual production target. That drives the stock up a good 11 percent.
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INDEX last +/-% absolute +/-% YTD
DJIA 30,243.18 +2.6% 752.29 -16.8%
S&P 500 3,781.52 +2.8% 103.09 -20.7%
Nasdaq Comp. 11,160.45 +3.2% 345.02 -28.7%
Nasdaq-100 11,574.29 +3.1% 344.56 -29.1%
US Bonds
Term Yield Bp to VT Yield VT +/-Bp YTD
2 years 4.08 -2.1 4.11 335.4
5 years 3.84 -3.8 3.88 258.4
7 years 3.73 -2.6 3.76 229.4
10 years 3.62 -1.6 3.63 210.8
30 years 3.70 +1.8 3.68 179.5
FOREX last +/- % Mon 8:14 Fri 17:13 % YTD
EUR/USD 0.9966 +1.5% 0.9824 0.9803 -12.4%
EUR/JPY 143.94 +1.3% 142.28 141.78 +10.0%
EUR/CHF 0.9775 +0.3% 0.9665 1.0185 -5.8%
EUR/GBP 0.8722 +0.5% 0.8723 0.8781 +3.8%
USD/JPY 144.46 -0.1% 144.85 144.61 +25.5%
GBP/USD 1.1426 +0.9% 1.1260 1.1165 -15.6%
USD/CNH (Offshore) 7.0460 -0.8% 7.1417 7.1281 +10.9%
Bitcoin
BTC/USD 20,076.61 +2.7% 19,234.20 20,133.61 -56.6%
ROHOEL last VT-Settlem. +/- % +/- USD % YTD
WTI/Nymex 86.43 83.63 +3.3% +2.80 +22.8%
Brent/ICE 91.89 88.86 +3.4% +3.03 +24.9%
GAS VT Settlem. +/- EUR
Dutch TTF 165.00 169.91 -2.9% -4.91 +160.3%
METALS last day before +/- % +/- USD % YTD
Gold (Spot) 1,724.52 1,699.85 +1.5% +24.67 -5.7%
Silver (Spot) 21.10 20.78 +1.5% +0.32 -9.5%
Platinum (Spot) 936.35 904.70 +3.5% +31.65 -3.5%
Copper Future 3.55 3.46 +2.6% +0.09 -19.9%
YTD relative to previous day’s close
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(END) Dow Jones Newswires
October 04, 2022 12:10 ET (16:10 GMT)
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