NEW YORK (Dow Jones)–Wall Street is likely to start trading on Friday with slight gains. The future on the S&P 500 is up 0.4 percent. There is further support in the hope that the interest rate peak in the USA has been reached. This was manifested by lower than expected inflation data over the course of the week. The stronger than forecast increase in weekly initial claims the day before further underscored this.
There are also increasing hopes of a “soft” landing for the US economy. In addition, the renewed decline in yields on the US bond market is providing support. The yield on ten-year papers was now below the 4.40 percent mark. It is currently down 2.1 basis points to 4.41 percent.
“The main reason for the recent rally is that Wall Street is confident that the Federal Reserve will not raise interest rates again this cycle. In fact, investors now expect the Fed to begin cutting rates in less than six months.” , according to Crossing Wall Street.
The US data agenda is very clear at the end of the week. Only construction starts and permits for October were published. These increased in each case contrary to economists’ expectations.
Dollar with slight levies – oil prices with recovery
The dollar gives up temporary gains and is in the red. The dollar index fell by 0.3 percent. The analysts at Danske Bank are betting on the euro in the short term; they believe it has the potential to reach $1.10 over the next month. They point to the US data, which was recently weaker than expected – but see the common currency as having an advantage and speak of an increasing appetite for risk. In the medium term, over a period of six to twelve months, Danske expects the euro exchange rate to fall and bases this on the relative trading conditions, the real growth prospects and the relative development of unit labor costs.
After the previous day’s massive drops of almost 5 percent to their lowest levels in four months, oil prices are recovering slightly. WTI and Brent rose in price by up to 1.7 percent. With a view to the previous day, UBS speaks of a combination of short selling and the fall through technical brands. But there are still concerns about demand. The slight recovery at the end of the week could be due to speculation that Saudi Arabia would extend the production restrictions into the new year due to the fall in prices, according to ING.
Applied Materials under pressure
In terms of individual values, Applied Materials shares fell by 7.1 percent before the starting bell, although the company exceeded market expectations in the fourth quarter and in the outlook for the current quarter. But according to media reports, the US Department of Justice has opened an investigation because the company is said to have supplied systems to a Chinese company without the necessary licenses.
Gap, on the other hand, made a price jump of 18.4 percent. The clothing retailer reported better-than-expected third-quarter results and higher profit margins, citing easing pressure to cut selling prices. The annual outlook was confirmed. Eli Lilly rose 0.9 percent. The pharmaceutical company is investing $2.5 billion in expanding production capacity in Germany.
Goodyear Tire & Rubber (+1.1%) is closing two production facilities in Germany to reduce production costs and improve its competitive position in the EMEA region. The plants in Fürstenwalde and Fulda are affected.
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US bonds
Maturity Yield Bp to VT Yield VT +/-Bp YTD
2 years 4.83 -0.5 4.84 41.2
5 years 4.41 -1.3 4.42 40.6
7 years 4.44 -1.6 4.45 46.5
10 years 4.41 -2.1 4.43 53.4
30 years 4.59 -2.2 4.61 62.2
FOREX last +/- % Fri, 8:24am Thu, 5:04% YTD
EUR/USD 1.0873 +0.2% 1.0839 1.0881 +1.6%
EUR/JPY 162.38 -0.7% 163.31 163.60 +15.7%
EUR/CHF 0.9640 -0.1% 0.9636 0.9652 -2.6%
EUR/GBP 0.8749 +0.1% 0.8752 0.8746 -1.1%
USD/JPY 149.36 -0.9% 150.67 150.36 +13.9%
GBP/USD 1.2427 +0.1% 1.2385 1.2442 +2.7%
USD/CNH (Offshore) 7.2196 -0.4% 7.2520 7.2483 +4.2%
Bitcoin
BTC/USD 36,453.28 +0.5% 36,264.44 36,529.25 +119.6%
ROHOEL most recently VT-Settlem. +/-% +/- USD% YTD
WTI/Nymex 74.13 72.90 +1.7% +1.23 -4.1%
Brent/ICE 78.64 77.42 +1.6% +1.22 -3.7%
GAS VT Settlem. +/- EUR
Dutch TTF 45.33 45.83 -1.1% -0.50 -49.1%
METALS last day previous +/- % +/- USD % YTD
Gold (spot) 1,989.93 1,981.25 +0.4% +8.68 +9.1%
Silver (spot) 24.04 23.98 +0.3% +0.06 +0.3%
Platinum (spot) 906.33 897.40 +1.0% +8.93 -15.1%
Copper future 3.71 3.70 +0.2% +0.01 -2.7%
YTD based on the previous day’s closing level
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(END) Dow Jones Newswires
November 17, 2023 08:47 ET (13:47 GMT)