Corona-fear and Fed-Outlook – stock markets plunge descending infection numbers in the USA and pessimistic forecasts of the U.S. Central Bank to the markets violently. It is the largest price losses since the selloff in March.2 Kommentare2Wieder to a little more than 25’000 points: The Dow Jones is plummeting.EPA/Justin Lane
signs of a resurgence of the Coronavirus pandemic in the United States to put the stock markets. A more pessimistic economic Outlook of the US Central Bank, the Fed, spoiled investors ‘ mood in addition. The US default value is index, the Dow Jones fell on Thursday to more than five percent on 25.542 points. The technology-heavy Nasdaq and the broader S&P 500 declined approximately four percent. The Dax and the EuroStoxx50 lost on Thursday, more than four percent to 11.970, respectively, 3159 points. The biggest price losses since the selloff in March.
For investors, the realization is taking hold, that economic recovery will be slow, said Chad Oviatt, Manager of the Huntington Private Bank. You will not be as hoped for V-shaped but W-shaped.
“in Front of the economy is a very uncertain way,” warned Fed Chairman Jerome Powell. A “significant portion” of people will remain unemployed for a long time. In addition, Powell signaled a long-term low interest rates. Financial values were then under selling pressure because of low interest rates, the profit margins in the traditional lending detract from business. The shares of Bank of America, Citigroup and JPMorgan fell by up to nearly ten percent.
Second wave or the first?
the figures gave cause for concern trading on the rise in Corona Infection in the United States. “There is but little evidence,” said Edmund Shing, chief investment strategist for equity derivatives at the Bank BNP Paribas. Finally, the current increase was not observed in the previous Hotspots such as New York. A second country-wide Lockdown was not to be expected.
The industrialized countries organization OECD warned that a second wave of Infection could slow the economic recovery significantly. Thus, the trigger of the recent stock market rally would follow – hoping for a rapid Overcoming of the pandemic – the basis of withdrawn, said Sean O’hara, Manager at the Fund provider Pacer ETF Distributors.
Worried traders: the Outlook for The US Central Bank, the Fed, are pessimistic.EPA/Justin Lane
Against this Background, tourism and recreational flying values in a high arc from the depot. The hardest hit, shares of the cruise provider, Carnival, Royal Caribbean and Norwegian. They broke in at times by up to 20 percent. The analysts of the Bank, JPMorgan said, however, that the business will achieve in the coming year, the pre-crisis level. The average Americans have a high risk tolerance. Also, many of the cruise participants repeat offenders are.
Under selling pressure also, Uber and Lyft came. The Californian authorities, the driver of the car service intermediaries in the U.S. state of apply in the future as employees rather than subcontractors. In order to have, among other things, entitlement to social benefits. The papers of Uber and Lyft have been pushed up to nine percent.
copper and Oil under pressure
The economic pessimism of the investors was also reflected in the raw materials market. The important industrial metal copper fell 2.6 percent on 5752,50 dollars per ton. The U.S. crude Oil WTI lost almost nine percent to 36,06 dollars per Barrel (159 litres). Here, the record laste high of U.S. stocks, in addition to the prices, said traders.
Some investors took refuge in “safe havens” like government bonds. This pushed the yield on the ten-year US Bonds 0,674 of 0,748 per cent. The Swiss currency was also asked. As a result, the exchange rate of the Dollar temporarily fell to a Three-month Low of 0,9372 francs. The “anti-crisis currency” Gold could not hold its recent gains and fell 0.5 percent to 1728,21 dollars per Troy ounce (31.1 grams). According to the assessment of Craig Erlam, market analyst of the broker house Oanda, it was taking a profit.
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