NEW YORK (dpa-AFX) – The Dow Jones Industrial (Dow Jones 30 Industrial) remained on the upswing on Tuesday. Stockbrokers referred to the recent Chinese economic stimulus measures as the driving force. However, sentiment was dampened somewhat by fears of a recession and warnings of rising and persistently high US key interest rates.
The leading US index gained 0.93 percent to 34,261.42 points and thus expanded the gains made at the beginning of the week. The market-wide S&P 500 went up 0.67 percent to 4439.26 points. The tech-heavy NASDAQ 100 gained 0.49 percent to 15,119.06 points.
The day before it had become known that China wants to give the country’s ailing real estate market more support. Specifically, it is about the deferral of real estate loans. This should make it possible to complete real estate projects under construction. In addition, there could be further support measures, noted Deutsche Bank’s market strategists with a view to corresponding media reports.
Comments by US Federal Reserve officials, however, citing the need for further monetary tightening, caused some uncertainty monetary policy confirmed this year. This fuels fears that the world’s largest economy could slide into recession. “US stock markets have priced in a soft landing or a more benign recession, but the real risk is that the recession will be worse than expected,” said manager Cecilia Chan of wealth manager HSBC Asset Management.
Salesforce shares came in second on the Dow, up 3.9 percent. The SAP competitor (SAP SE) had announced that it wanted to increase its list prices by an average of nine percent.
The shares of 3M, which rose by 4.9 percent, were ahead in the leading US index. They benefited from a positive analyst comment from Bank of America. Expert Andrew Obin wrote that the merits of the conglomerate’s restructuring plans were underestimated.
US Bancorp’s stock rose 3.5 percent, among the best performers in the S&P 500. Here, too, analyst comment from Bank of America proved to be the driving force. The expert Ebrahim Poonawala described the financial institution as one of the highest quality companies in the US banking sector.
At the top of the Nasdaq 100, Activision Blizzard’s shares rose by ten percent. Microsoft is a big step closer to acquiring the video game giant. A San Francisco judge denied the US government’s request to block the deal with an injunction. Microsoft is now thinking about new concessions to the British competition authority CMA. The papers of the software group increased somewhat.
The euro came under some pressure, trading at $1.1006 in late US trade. The economic expectations of the Center for European Economic Research for Germany clouded over again in July. The European Central Bank had set the reference rate at 1.0989 (Monday: 1.0956) US dollars. The dollar thus cost 0.9100 (0.9127) euros.
The futures contract for ten-year bonds (T-Note Future) rose by 0.14 percent to 111.30 points. In return, the yield on ten-year Treasuries fell to 3.98 percent./la/he
— By Lutz Alexander, dpa-AFX —