NEW YORK (dpa-AFX) – The recent stabilization on the New York stock exchanges will probably be put to the test again on Tuesday. The US continues to be a burdenmonetary policy the mood. In addition, the approaching possible budget freeze is increasingly straining investors’ nerves. Three quarters of an hour before the start of trading, the broker IG estimated the Dow Jones Industrial (Dow Jones 30 Industrial) 0.5 percent lower to 33,852 points. IG sees the technology-heavy NASDAQ 100 down 0.6 percent at 14,682 points.
Last Wednesday, the US Federal Reserve left the key interest rate unchanged as expected, but a possible further one Interest rate increase placed in the room. In addition, the monetary authorities expect fewer interest rate cuts for 2024 than before. The key interest rate is currently at its highest level in more than twenty years at 5.25 to 5.5 percent.
On Monday, the chairman of the local central bank in Minneapolis, Neel Kashkari, fueled interest rate fears with monetary policy statements. Given the surprisingly robust US economy, the Fed could be forced to raise interest rates even further and keep them at this level for longer in order to reduce inflation, the central banker emphasized. Jamie Dimon, head of the largest US bank JPMorgan, poured further fuel on the fire with his mental games of increasing interest rates to seven percent.
Meanwhile, the rating agency Moody’s warned that a budget freeze in the USA would have a negative impact on the creditworthiness of the world’s largest economy. MPs in Washington still have until the weekend to agree on raising the debt ceiling.
Coty shares (Coty A) lost 3.4 percent premarket on Tuesday. The cosmetics and perfume group is concretizing its plans for a secondary listing on the Paris trading center of the multi-country Euronext exchange. Coty is offering 33 million shares, which are worth around $389 million based on Monday’s closing price.
Tesla’s recently stabilized shares fell by 0.9 percent. The American electric car manufacturer (Tesla) has also come into the EU’s sights as part of an investigation into subsidies for car manufacturers in China. According to insiders, the group also benefited from this./gl/men