NEW YORK (Dow Jones) — After the long Christmas weekend, the US stock exchanges started the last trading week of the year cautiously on Tuesday. The Dow Jones index increased by 0.1 percent to 33,224 points. The S&P 500 is down 0.2 percent, while the Nasdaq Composite is down 0.5 percent.
Since many market participants are still on vacation, trading is likely to be relatively quiet and characterized by low turnover, which could, however, result in larger price swings.
Little has changed in the overarching themes. The focus continues to be on the central banks’ aggressive interest rate hikes to combat high inflation and the resulting burdens on the global economy. However, recent economic data had suggested that US inflation may have peaked, which could ease some of the pressure on the Fed to stick to its tight interest rate policy.
The fact that the corona measures are being relaxed further in China is positively received. From January 8th, the quarantine obligation for travelers is to be lifted.
“This is certainly something that traders and investors have long hoped for as China has maintained its zero-Covid policy very strictly throughout the year,” said Naeem Aslam, senior market analyst at AvaTrade. “However, the recession remains a major theme among investors and traders and this is likely to limit any corrective action in the markets.”
Dollar moderately firmer
On the foreign exchange market, the dollar index is moderately 0.1 percent firmer. However, the dollar remains within its recent tight trading range against a basket of currencies as activity is light due to the year-end holiday.
Oil prices are increasing slightly. The relaxation of the corona virus in Beijing is having a supporting effect, which is expected to lead to higher demand. The price of the Brent grade rose by 0.4 percent, the WTI price by 0.5 percent.
Yields are rising in the bond market. The yield on 10-year paper increased by 7.1 basis points to 3.82 percent.
Airlines weighed down by winter storm – Tesla weak
Southwest Airlines shares fell 5.2 percent on an individual basis. The airline canceled more than two-thirds of its flights on Monday and plans further cuts in flight schedules on Tuesday and Wednesday. As other airlines begin to recover from the effects of the winter storm, Southwest has found thousands of customers stranded. Delta Air Lines was down 1.0 percent and Alaska Air was down 2.3 percent.
Tesla suspended car production at its Shanghai plant on Saturday, according to sources, extending a planned eight-day shutdown at its world’s largest plant. For one, Tesla is facing a wave of Covid-19 infections among its workers and suppliers. On the other hand, global demand for Tesla vehicles has recently slowed. The share lost 5.7 percent.
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INDEX last +/-% absolute +/-% YTD
DJIA 33,223.77 +0.1% 19.84 -8.6%
S&P 500 3,838.02 -0.2% -6.80 -19.5%
Nasdaq Comp. 10,447.59 -0.5% -50.27 -33.2%
Nasdaq-100 10,928.53 -0.5% -56.92 -33.0%
US Bonds
Term Yield Bp to VT Yield VT +/-Bp YTD
2 years 4.37 +5.5 4.31 364.0
5 years 3.91 +5.6 3.86 265.3
7 years 3.90 +6.7 3.84 246.5
10 years 3.82 +7.1 3.75 230.9
30 years 3.92 +9.9 3.82 201.8
FOREX last +/- % Tue, 8:34 Fri, 17:25 % YTD
EUR/USD 1.0620 -0.1% 1.0664 1.0622 -6.6%
EUR/JPY 141.77 +0.3% 141.69 141.03 +8.3%
EUR/CHF 0.9886 -0.3% 0.9913 1.0721 -4.7%
EUR/GBP 0.8839 +0.3% 0.8811 0.8805 +5.2%
USD/JPY 133.47 +0.4% 132.86 132.79 +16.0%
GBP/USD 1.2018 -0.4% 1.2104 1.2062 -11.2%
USD/CNH (Offshore) 6.9705 -0.1% 6.9735 6.9960 +9.7%
Bitcoin
BTC/USD 16,775.10 -0.4% 16,878.66 16,827.65 -63.7%
CRUDE OIL last VT settlem. +/- % +/- USD % YTD
WTI/Nymex 79.99 79.56 +0.5% +0.43 +16.3%
Brent/ICE 84.25 83.92 +0.4% +0.33 +16.3%
GAS VT Settlem. +/- EUR
Dutch TTF 81.41 82.98 -1.9% -1.57 +30.4%
METALS last day before +/- % +/- USD % YTD
Gold (Spot) 1,805.08 1,798.20 +0.4% +6.88 -1.3%
Silver (Spot) 23.88 23.73 +0.7% +0.15 +2.4%
Platinum (Spot) 1,002.05 1,026.50 -2.4% -24.45 +3.3%
Copper Future 3.88 3.80 +2.0% +0.08 -12.0%
YTD relative to previous day’s close
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(END) Dow Jones Newswires
December 27, 2022 09:50 ET (14:50 GMT)
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