Investors are betting on a soft landing for the US economy
November 17, 2023, 10:51 pm
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In the US, the increase in the number of initial claims for unemployment benefits is fueling hopes of containing inflation. Wall Street closes with small profits on the last trading day of the week. It’s also worth taking a look at companies that are building or closing factories in Germany.
Wall Street closed the last trading session of the week with small profits. With the Dow Jones rising more than 2,500 points since its October low, investors have become more cautious. O Dow Jones Index closed 2 points higher at 34,947. For the S&P 500 and the Nasdaq Composite increased by 0.1 percent each. There were a total of 1,950 (Thursday: 1,086) price winners and 916 (1,761) losers. 64 (89) shares closed unchanged.
General expectations continued to support the hope that the peak in US interest rates has been reached. This was manifested by lower than expected inflation data throughout the week. This was further supported by the stronger than anticipated increase in weekly initial unemployment benefit claims the previous day.
Investors are also betting on a “soft” landing for the US economy. However, yields in the US bond market increased, especially in the short segment, following early selling. O Ten-Year Bond Yield it was now trading below the 4.40 percent mark. In recent deals, it showed little change at 4.44 percent.
Oil prices recover
“The main reason for the recent rally is that Wall Street is confident that the Federal Reserve will not raise interest rates again this cycle. In fact, investors now expect the Fed to begin cutting rates in as little as six months,” according to Crossing. Wall Street.
The dollar gave up temporary gains and was in the red. O dollar index decreased by 0.5 percent. Danske Bank analysts are betting on the euro in the short term; they believe it has the potential to reach $1.10 next month. They point to recent data from the US, which was weaker than expected. In the medium term, over a time horizon of six to twelve months, Danske expects the euro exchange rate to fall and bases this on relative trading conditions, real growth prospects and relative developments in unit labor costs.
After the previous day’s sharp falls of almost 5% to their lowest levels in four months, oil prices recovered. WTI It is Brent increased in price by about 4 percent. Looking at the previous day, UBS talked about a combination of short selling and falling technical marks. However, there are still concerns about demand. The rebound later in the week may be due to speculation that Saudi Arabia will extend production restrictions into the new year due to falling prices, according to ING.
Investigating applied materials?
When it came to individual shares, shares went from Applied Materials down 4 percent, although the company beat market expectations in the fiscal fourth quarter and the outlook for the current quarter also came in above expectations. But according to media reports, the US Department of Justice opened an investigation because the company allegedly provided systems to a Chinese company without the necessary licenses.
Breach On the other hand, the price rose 30.6 percent. The apparel retailer reported better-than-expected third-quarter results and higher profit margins, citing reduced pressure to reduce prices. The annual outlook was confirmed. Eli Lilly increased by 0.5 percent. The pharmaceutical company is investing $2.5 billion in expanding production capabilities in Germany.
Goodyear tires and rubber (-0.1%) is closing two production facilities in Germany to reduce production costs and improve its competitive position in the EMEA region. The factories in Fürstenwalde and Fulda were affected.