Investors have recently been acting more cautiously again: the start of the week is correspondingly cautious.
After a subdued start to the week, New York stock prices have not really gained momentum today either. The uncertain economic prospects and the interest rate decision by the US Federal Reserve expected on June 14 remained the focus of interest after the US debt dispute had been settled. Investors have been acting more cautiously again lately.
The leading index Dow Jones Industrial closed just under 0.03 percent up at 33,573.28 points. The market-wide S&P 500, which is on the verge of entering a “bull market” again according to the common definition, developed better. It ultimately rose by 0.24 percent to 4283.85 points. In the second-line stocks segment, price rallies at some US regional banks were positively noticeable.
The tech-heavy Nasdaq 100 was up just 0.01 percent to 14,558.09 points. The tech rally of the past few weeks, which had led Apple shares to a record high the day before, lost some momentum.
Lately it has become the credo of investors that the economic risks have not diminished as a result of the US debt deal. “The compromise in the USA provides for a noticeable reduction in government spending, which increases the likelihood of a recession,” said LBBW chief economist Moritz Krämer on Tuesday.
There are also doubts as to whether the Fed is really at the end of its interest rate cycle. The UBS economist Jonathan Pingle does not initially expect a rate hike in mid-June, but then expects it to do so in July. He referred to the persistently high level of inflation and the recent robust development on the US labor market. In a study, he pushed back the time he expected for an interest rate cut to December.
Crypto exchanges in focus
On the corporate side, crypto exchanges remained in focus: After the Binance platform, the US Securities and Exchange Commission (SEC) is now also accusing Coinbase of violating the Securities Act. The accusation: The company operates an illegal securities trading exchange and also carries out certain other financial services without the necessary approval.
Expert Mark Palmer from Berenberg Bank emphasized that a significant part of Coinbase’s sales is at stake. The shares, which had already lost 9 percent the previous day due to a similar lawsuit against Binance, now slumped further by 12 percent. At times they even fell by more than 20 percent to their lowest level since mid-January.
MicroStrategy stock was also hit by the Binance lawsuit earlier this week, as the business software company is known for harboring a large Bitcoin hoard. With an increase of eight percent, the previous day’s losses were almost made up for on Tuesday. Berenberg analyst Palmer referred to a reported multi-year partnership with Microsoft in the field of artificial intelligence.
After a temporary record high the day before and temporary profit-taking, Apple calmed down again on Tuesday. Initially higher price losses reduced to minus 0.2 percent. Papers from the aircraft manufacturer Boeing also fell significantly at times due to reported delivery delays for the 787 long-haul jet, but also put their price losses back into perspective to 0.7 percent.
The fact that a dispute between the major golf organizations PGA Tour and DP World Tour and the LIV Tour, financed from Saudi Arabia, was surprisingly settled also caused a stir. A future partnership was agreed to standardize the sport of golf. Stocks focused on the sport, such as Topgolf Callaway Brands or Acushnet Holdings, benefited from this with increases of up to 5.5 percent.
The last price paid for the euro was 1.0691 US dollars. The European Central Bank (ECB) had set the reference rate at 1.0683 (Monday: 1.0690) dollars. The dollar thus cost 0.9361 euros. On the US bond market, the futures contract for ten-year government bonds was recently 0.05 percent lower at 113.83 points. The return was 3.685 percent.
Source: Stern
