NEW YORK (Dow Jones) — Wall Street turns down again on Tuesday. At the start of trading, it initially looked as if the US stock exchanges would at least stabilize after the previous day’s crash and a three-day slide. According to information from the trade, reports that the European Union was aiming for joint financing of energy and defense spending had been somewhat supportive. European leaders are meeting in Versailles this week to debate plans to reduce their dependence on Russian energy. Hopes that a big joint bond issue will give European countries some financial breathing space are giving equity markets some support, says Hargreaves Lansdown analyst Susannah Streeter.
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The Dow Jones index, which slipped into correction mode for the first time in two years the previous day, fell by 0.1 percent around noon (New York local time). S&P 500 and Nasdaq Composite down 0.4 and 0.5 percent, Nasdaq is in Brenmarkt. The development proves that traders who had doubts about the sustainability of the stabilization at the opening were right. After all, the recent third round of talks between delegates from Russia and Ukraine remained virtually fruitless, and Russia is continuing its war of aggression against Ukrainian cities without ceasing.
In addition, oil prices continue to rise. Now Russia is also considering an embargo on oil exports, after a discussion was initiated in the USA over the weekend about no longer purchasing energy from Russia. In trade on Tuesday it was heard that the USA wants to stop all energy imports from Russia. Although the USA is not dependent on energy supplies from Russia, with the exploding oil prices, fears of stagflation are boiling up on the US stock exchanges. “Not every recession has been triggered by an oil price rally, but every oil price shock has triggered a recession,” warns market strategist Brian O’Reilly of Mediolanum International Funds.
The price of oil is also being boosted by the fact that a new version of the nuclear agreement with Iran seems to be a little more remote. For one thing, Russia, which is involved in the negotiations, has created new hurdles by linking the deal to sanctions imposed on Moscow over the Ukraine war. According to its own statements, Tehran launched its second military satellite into space on Tuesday. Iran launched the first military satellite in April 2020, which drew sharp criticism from the West.
Investors flee to gold
In view of the gloomy economic prospects, supposedly safe havens are being sought. The price of gold is marching towards its all-time high. Bonds, on the other hand, are not in demand because rising prices for energy and agricultural commodities are fueling fears of inflation. Falling prices drive yields up. The US dollar is also weakening somewhat, with the dollar index losing 0.1 percent. A further increase in the coming days is plausible, according to the trade with a view to the 21-month high of the previous day.
Chevron rise by around 7 percent to a record high with the oil price rally. The stock records the longest winning streak in three and a half years. Exxon Mobil’s competitor shares climb 4.6 percent. Positive analyst comment helps Caterpillar up 8 percent. Jefferies upgraded the construction equipment maker’s stock to “buy,” calling it a “strong hedge” against commodity inflation.
The second-hand retailer ThredUp has presented mixed quarterly figures. Although the company exceeded sales expectations in its first quarter, it posted a higher loss than expected. In addition, ThredUp disappointed with the view. The share has recovered after an initial slump and is up 2.4 percent.
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INDEX last +/-% absolute +/-% YTD
DJIA 32,786.34 -0.1% -31.04 -9.8%
S&P 500 4,185.15 -0.4% -15.94 -12.2%
Nasdaq Comp. 12,770.40 -0.5% -60.57 -18.4%
Nasdaq-100 13,231.15 -0.7% -88.23 -18.9%
US Bonds
Term Yield Bp to VT Yield VT +/-Bp YTD
2 years 1.60 +6.1 1.54 87.5
5 years 1.79 +8.2 1.71 52.8
7 years 1.84 +8.6 1.75 40.0
10 years 1.86 +8.8 1.77 34.9
30 years 2.24 +5.0 2.19 34.4
FOREX last +/- % Tue 9:00 Mon 17:33 % YTD
EUR/USD 1.0881 +0.2% 1.0859 1.0856 -4.3%
EUR/JPY 125.84 +0.5% 125.38 125.37 -3.9%
EUR/CHF 1.0120 +0.7% 1.0062 1.0063 -2.5%
EUR/GBP 0.8306 +0.3% 0.8295 0.8283 -1.2%
USD/JPY 115.65 +0.3% 115.47 115.46 +0.5%
GBP/USD 1.3100 -0.0% 1.3088 1.3106 -3.2%
USD/CNH (Offshore) 6.3252 -0.0% 6.3216 6.3287 -0.5%
Bitcoin
BTC/USD 38,393.16 +0.5% 38,601.57 39,339.63 -17.0%
ROHL last VT-Settl. +/- % +/- USD % YTD
WTI/Nymex 128.01 119.40 +7.2% 8.61 +71.9%
Brent/ICE 132.24 123.21 +7.3% 9.03 +71.6%
METALS last day before +/- % +/- USD % YTD
Gold (Spot) 2,066.33 1,998.12 +3.4% +68.21 +12.9%
Silver (Spot) 26.82 25.64 +4.6% +1.18 +15.1%
Platinum (Spot) 1,167.64 1,126.69 +3.6% +40.95 +20.3%
Copper Future 4.69 4.72 -0.7% -0.03 +5.0%
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(END) Dow Jones Newswires
March 08, 2022 12:27 PM ET (17:27 GMT)
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