(Repetition)
By Steffen Gosenheimer
NEW YORK (Dow Jones) — After Wednesday’s weak bias, Wall Street looks set to recover on Thursday. Futures on the US indices are up up to 1 percent. Business should also be quiet on the penultimate trading day of the year because many participants stay away from trading around Christmas and New Year’s Eve. In addition, the economy is very quiet, the weekly job market report was in line with expectations and therefore does not provide any impetus.
A look at the corona development in China creates confidence and uncertainty at the same time. On the one hand, following the extensive easing of the long-held zero-Covid policy, the resumption of travel to and from China could provide a boost to the global economy. At the same time, however, rising demand could push up prices for energy and other commodities and fuel inflation, which in turn could lead to a longer cycle of interest rate hikes.
In addition, the observed rapid spread of cases of corona infection in China increases the potential for new variants. Some countries have begun or announced that the entry of people from China will be subject to conditions such as negative corona tests. It is also double-edged how the easing on the one hand and the increased cases of infection on the other hand affect the supply chains in China that are still not running smoothly.
“That’s why we have this hot and cold market reaction,” says Swissquote Bank analyst Ipek Ozkardeskaya, adding: “We don’t know what’s going to happen with this new wave.” The expert points out that the technical situation on the US stock market is “precarious” after the recent setback. The S&P 500 index was last seen at 3,783 points, giving back half of its October-November gains and indicators are pointing to further losses with the next target at 3,724 points.
Lockheed Martin is fighting back
An arms deal is a topic of conversation on the stock market. Lockheed Martin has filed a complaint against the award of a contract to competitor Textron. The order for the construction of a new helicopter fleet is estimated at up to 80 billion dollars. It can take months before a decision is made as to whether the contract should even be re-tendered. Lockheed are slightly up pre-market, Textron are not yet traded.
Meanwhile, the energy giant Exxon (-0.1%) is taking legal action against the excess profit tax passed by the EU because it is exceeding its legislative powers.
Cal-Maine Foods is down a good 4 percent on Nasdaq.com. The egg producer’s good quarterly figures were mainly due to higher prices, while production costs rose sharply at the same time.
Hyzon Motors gain a good 7 percent. A subsidiary of the company is investing in “clean” fuels together with a division of Chevron.
US Bonds
Term Yield Bp to VT Yield VT +/-Bp YTD
2 years 4.37 +2.1 4.35 363.9
5 years 3.97 +0.1 3.97 271.1
7 years 3.96 -0.5 3.96 251.9
10 years 3.88 -0.6 3.88 236.6
30 years 3.97 +0.1 3.97 207.3
FOREX last +/- % Thu, 8:04 Wed, 17:22 % YTD
EUR/USD 1.0659 +0.4% 1.0614 1.0622 -6.3%
EUR/JPY 141.97 -0.5% 141.97 142.62 +8.5%
EUR/CHF 0.9837 -0.1% 0.9855 1.0786 -5.2%
EUR/GBP 0.8847 +0.2% 0.8827 0.8827 +5.3%
USD/JPY 133.25 -0.8% 133.79 134.24 +15.8%
GBP/USD 1.2048 +0.3% 1.2025 1.2032 -11.0%
USD/CNH (Offshore) 6.9806 -0.2% 6.9703 6.9923 +9.9%
Bitcoin
BTC/USD 16,614.65 +0.6% 16,567.47 16,594.34 -64.1%
ROHOEL last VT-Settlem. +/- % +/- USD % YTD
WTI/Nymex 78.32 78.96 -0.8% -0.64 +13.9%
Brent/ICE 82.50 83.26 -0.9% -0.76 +13.9%
GAS VT Settlem. +/- EUR
Dutch TTF 83.70 81.35 +2.9% +2.35 +28.4%
METALS last day before +/- % +/- USD % YTD
Gold (Spot) 1,809.66 1,802.60 +0.4% +7.06 -1.1%
Silver (Spot) 23.96 23.55 +1.8% +0.41 +2.8%
Platinum (Spot) 1,031.55 1,011.00 +2.0% +20.55 +6.3%
Copper Future 3.83 3.84 -0.3% -0.01 -12.8%
YTD relative to previous day’s close
Contact the author: [email protected]
DJG/DJN/gos/jhe
(END) Dow Jones Newswires
December 29, 2022 09:03 ET (14:03 GMT)
Leverage must be between 2 and 20
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