ROUNDUP/Aktien New York Close: Significantly recovered – Allayed fear of interest rates helps | news
indexes in this article
NEW YORK (dpa-AFX) – New hopes for interest rates rising more slowly and good company news brought a significant recovery to the US stock exchanges on Monday. The leading index Dow Jones Industrial (Dow Jones 30 Industrial) closed 1.86 percent higher at 30,185.82 points. In the end, the market-wide S&P 500 rose by 2.65 percent to 3677.95 points. The NASDAQ 100, which is peppered with technology stocks, even gained 3.46 percent to 11,062.53 points – this meant the highest percentage daily gain since July 27.
The US stock market thus continued its recent zigzag course, which had brought it a severe setback after stabilizing on Thursday before the weekend. Tech values in particular had gone down again on Friday.
Industrial sentiment in the state of New York surprisingly deteriorated significantly in October, as the current Empire State Index shows. Standing below the zero line, the indicator signals a decline in economic activity. In recent months, the mood in companies has tended to deteriorate. The background is probably the Ukraine war, the significantly higher energy prices and the ongoing problems in world trade. According to the regional central bank of New York, companies are currently not expecting the general conditions to improve in the next six months.
“Currently, the stock markets are saying that bad US economic data are providing good impetus for stock trading,” commented expert Andreas Lopkow. The strong downturn in the Empire State Index is being used as a possible reason for the Fed to raise interest rates more slowly. “It is doubtful whether this will actually be the case,” Lipkow continued. “It helps (but) to find a reason to buy, at least temporarily, at the currently oversold level of the US stock indices.” In addition, some better than expected quarterly reports brightened the mood.
At the beginning of the new week, the series of figures from the major US banks entered the second round. Bank of America surprised on the upside as it weathered the economic turmoil in the third quarter better than experts expected. Despite high provisions, the bank only made slightly less profit than in the same period last year. The shares rose by around six percent. Bank of New York Mellon stock was up about 5 percent — earnings beat expectations despite a decline.
Shares in US biogas producer Archaea Energy (Archaea Energy A) even shot up by more than half to almost $26 thanks to the pending takeover by BP. Archaea’s management around CEO Nick Storck agrees to the deal, including debt, which is worth around 4.1 billion US dollars, for which the British oil and gas company wants to put around 26 dollars a share in cash on the table. The BP shares had lost 1.2 percent in London against the friendly market.
The possible reunification of the media companies News Corp (News) and Fox Corp (Fox) met with mixed reactions: while News shares rose by two and a half percent, Fox shares fell by almost eight percent. According to both companies, media mogul Rupert Murdoch plans to merge them. His family trust holds about 40 percent of the voting stock of both companies. The merger could save costs and the larger company could more easily develop new business areas such as sports betting across multiple media channels, it said.
The shares of Chinese companies listed in New York benefited from statements by Chinese President Xi Jinping, who pledged their support. The papers of the Internet company JD.com (JDcom) and the Amazon industry colleague Alibaba each rose by around five percent. Xi did not show any sign of deviating from his zero-Covid policy at the Communist Party conference. However, the economic upturn continues to have top priority, the party and head of state asserted. He also pledged support to technology companies.
The euro benefited visibly from investors’ risk appetite and most recently climbed to $0.9837 in New York trading. The European Central Bank (ECB) had set the reference rate at 0.9739 (Friday: 0.9717) dollars; the dollar had thus cost 1.0268 (1.0291) euros.
In the US bond market, initial gains melted in the face of strong stock markets. The futures contract for ten-year Treasuries (T-Note Future) claimed a plus of 0.10 percent to 110.70 points. The yield on ten-year government bonds was 4.02 percent./gl/he
— By Gerold Löhle, dpa-AFX —