MARKETS USA / Wall Street based on US inflation data with premiums
NEW YORK (Dow Jones) – The eagerly anticipated US consumer prices for December are as expected by the market. The annual inflation rose to 7.0 percent (November: 6.8 percent) and thus met the forecast exactly. However, this is the highest level since 1982. However, it is expected that this will have reached the peak of the price increase.
Shortly after the start of trading, the Dow Jones Index was 0.5 percent higher at 36,442 points. The S&P 500 gains 0.6 percent. The technology-heavy Nasdaq composite is up 1.0 percent.
According to inflation data, which was in line with expectations, the dollar is expanding its taxes. The dollar index is currently falling 0.4 percent, the euro climbs to 1.1413 dollars, after 1.1365 dollars before the data was published. On the bond market, the ten-year yield is 2.6 basis points in response to 1.71 percent.
Recently, worries about a faster rate hike by the US Federal Reserve weighed on the stock markets due to the inflation trend. Technology stocks in particular, which are characterized by a high debt capital ratio, react sensitively to rising interest rates.
The price data presented should ease the pressure on the central bank to tighten monetary policy more quickly. In December, the US central bankers had promised three rate hikes of a quarter of a percentage point each for this year and signaled that these could begin in March. However, some analysts had even expected four, including houses like Goldman Sachs and Deutsche Bank.
In his speech to the Senate Committee on Banks on Tuesday, US Federal Reserve Chairman Jerome Powell was not as hawkish as other representatives of the US Federal Reserve recently. The Fed chief said high inflation has taken its toll and posed a serious threat to economic recovery. He affirmed that he wanted to fight inflation and that the US Federal Reserve would raise interest rates if necessary. Powell was also confident that the supply chain disruptions that drove prices up should ease. In China, however, the rise in consumer prices has already slowed.
Investors are also turning their attention to the upcoming reporting season. With the annual reports from JP Morgan Chase, Citigroup, Wells Fargo and Blackrock in the course of the week, the numbers of several heavyweights from the financial sector are pending.
Prices on the oil market are increasing somewhat. In the US, US crude oil inventories fell 1.1 million barrels in the past week, according to data from the private American Petroleum Institute (API). Meanwhile, gasoline inventories increased by 10.9 million barrels. All eyes are now on the official dates, which will be published one hour after the starting bell.
Only in the evening (8 p.m. CET) does the US Federal Reserve present its current economic report, Beige Book.
Jefferies buckle by the numbers
Among the individual values, Citigroup moved up 1.2 percent after the bank had announced that it would give up the consumer business in Mexico trading under the name of Banamex as part of strategic adjustments.
Jefferies’ stock fell 8.5 percent after the investment bank’s fourth quarter earnings fell short of market expectations. Jefferies also announced that it would increase the quarterly dividend by 20 percent to 30 cents.
The takeover of the US software company Nuance Communications (+ 0.2%) planned by Microsoft (+ 1.1%) is being examined by the British competition authorities. As announced by the Competition and Markets Authority (CMA), it has opened a formal investigation to determine whether the merger would affect competition in the UK markets.
Ally Financial are up 2.9 percent. The financial services company’s board had approved a dividend increase and a share buyback program worth $ 2 billion.
INDEX last +/-% absolute +/-% YTD
DJIA 36.441,51 + 0,5% 189,49 + 0,3%
S&P-500 4.742,04 +0,6% 28,97 -0,5%
Nasdaq-Comp. 15.299,17 +1,0% 145,72 -2,2%
Nasdaq-100 15.995,61 +1,0% 151,49 -2,0%
Maturity Yield Bp to VT Yield VT +/- Bp YTD
2 years 0.89 +0.4 0.88 15.7
5 years 1.48 -1.8 1.50 22.3
7 years 1.66 -2.5 1.68 21.8
10 years 1.71 -2.6 1.74 20.5
30 years 2.06 -1.3 2.07 15.8
Forex last +/-% Wed, 8:14 a.m. Tue, 5:30 p.m.% YTD
EUR/USD 1,1413 +0,4% 1,1366 1,1362 +0,4%
EUR/JPY 131,33 +0,2% 131,05 131,10 +0,3%
EUR/CHF 1,0491 -0,1% 1,0499 1,0496 +1,1%
EUR/GBP 0,8338 -0,0% 0,8336 0,8344 -0,8%
USD/JPY 115,08 -0,2% 115,30 115,39 -0,0%
GBP/USD 1,3687 +0,4% 1,3634 1,3619 +1,2%
USD/CNH (Offshore) 6,3632 -0,2% 6,3685 6,3782 +0,1%
BTC/USD 43,842.72 +2.6% 42,555.59 42,546.94 -5.2%
ROHÖL last VT-Settl. +/-% +/- USD% YTD
WTI/Nymex 81,96 81,22 +0,9% 0,74 +9,0%
Brent/ICE 84,17 83,72 +0,5% 0,45 +8,0%
METALS last previous day +/-% +/- USD% YTD
Gold (Spot) 1.822,58 1.821,58 +0,1% +1,00 -0,4%
Silver (spot) 22.94 22.78 + 0.7% +0.16 -1.6%
Platinum (Spot) 985.25 975.12 +1.0% +10.13 +1.5%
Kupfer-Future 4,54 4,43 +2,4% +0,11 +1,6%
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(END) Dow Jones Newswires
January 12, 2022 09:50 ET (14:50 GMT)