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According to final results at the close, the Dow Jones index remained stable at 32,945.24 points. The tech-heavy NASDAQ fell 2.04% to 12,581.22 points. The S&P 500 index lost 0.74% to 4173.11 points.
The NASDAQ is back in “bear market” (referring to the bear lowering its paw when attacking), meaning the market is down more than 20% from its late November peak.
Trading, which had started in the green, was dominated by volatility as investors reacted to geopolitical developments and renewed COVID-19 contagion in China that worries China.
The fourth round of talks between Ukraine and Russia is due to resume on Tuesday, a negotiator from Kyiv has reported.
On Sunday, a Russian negotiator spoke of “significant progress”, which had given the indices a boost at the start of the session.
At the same time, the Russian bombardments continue to rage.
Two people were killed in Russian bombardments in Kyiv that targeted a residential building and an aircraft factory. Nine people were killed in a strike by the Russian army against a television tower near Rivne (west).
The Russian army “does not exclude the possibility of taking full control of the large cities which are already surrounded”, warned the spokesman of the Kremlin, Dmitry Peskov.
Moreover, Washington said it was “deeply” concerned about the position of “China’s alignment with Russia” for the war in Ukraine.
“Chinese stocks listed in the United States have been under pressure following reports that Russia has asked China for military assistance in Ukraine,” said Wells Fargo analysts.
Chinese online shopping sites Alibaba and JD.com each lost more than 10%.
Additionally, “China is seeing the largest increase in COVID-19 cases since March 2020, which has triggered lockdowns in several cities, including Shenzhen,” a major tech hub, Schwab reported.
Apple lost 2.66% to $150.62 as one of its suppliers, Foxconn, had to suspend operations in Shenzhen.
Other tech stocks also lost ground like Amazon (-2.52% to $2,837.06), Alphabet (-2.86% to $2,534.82) and chipmakers like Nvidia (-3.48 %) or AMD (-1.96%).
The laboratories manufacturing vaccines against COVID-19 had the wind in their sails like Moderna (+8.59% to 150.07 dollars) or Pfizer (+3.94% to 52.25 dollars).
Yields in the bond market stretched sharply as investors expect the U.S. central bank (Fed) to begin a cycle of rate hikes as early as Wednesday following a two-day monetary meeting.
Yields on ten-year Treasury bills climbed to 2.13%, their highest since July 2019.
Markets expect the Fed to hike overnight rates by a quarter of a percentage point (0.25%) for the first time since 2018.
Stocks in the financial sector were boosted by the prospect of higher rates: Visa gained 1.84% and American Express 2.91%.
Toronto Stock Exchange closes lower with commodities
(Toronto) – The Toronto Stock Exchange recorded its worst session in nearly two months on Monday, weighed down by concerns over a rise in COVID-19 cases in China, weak commodity prices and the best bond yields in several years ahead of the Federal Reserve’s interest rate hike, expected on Wednesday.
The Toronto Stock Exchange’s S&P/TSX Composite Index closed down 281.05 points to 21,180.78 points.
In the currency market, the Canadian dollar traded at an average rate of 78.27 cents US, down from 78.62 cents US on Friday.
On the New York Commodities Exchange, crude oil prices fell US$6.32 to US$103.01 a barrel, while natural gas fell 6.7 cents US to $4.66. US per million BTU.
The price of gold fell US$24.20 to US$1,960.80 an ounce and that of copper depreciated 10.3 cents US to US$4.52 a pound.
The Canadian Press
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According to final results at the close, the Dow Jones index remained stable at 32,945.24 points. The tech-heavy NASDAQ fell 2.04% to 12,581.22 points. The S&P 500 index lost 0.74% to 4173.11 points.
The NASDAQ is back in “bear market” (referring to the bear lowering its paw when attacking), meaning the market is down more than 20% from its late November peak.
Trading, which had started in the green, was dominated by volatility as investors reacted to geopolitical developments and renewed COVID-19 contagion in China that worries China.
The fourth round of talks between Ukraine and Russia is due to resume on Tuesday, a negotiator from Kyiv has reported.
On Sunday, a Russian negotiator spoke of “significant progress”, which had given the indices a boost at the start of the session.
At the same time, the Russian bombardments continue to rage.
Two people were killed in Russian bombardments in Kyiv that targeted a residential building and an aircraft factory. Nine people were killed in a strike by the Russian army against a television tower near Rivne (west).
The Russian army “does not exclude the possibility of taking full control of the large cities which are already surrounded”, warned the spokesman of the Kremlin, Dmitry Peskov.
Moreover, Washington said it was “deeply” concerned about the position of “China’s alignment with Russia” for the war in Ukraine.
“Chinese stocks listed in the United States have been under pressure following reports that Russia has asked China for military assistance in Ukraine,” said Wells Fargo analysts.
Chinese online shopping sites Alibaba and JD.com each lost more than 10%.
Additionally, “China is seeing the largest increase in COVID-19 cases since March 2020, which has triggered lockdowns in several cities, including Shenzhen,” a major tech hub, Schwab reported.
Apple lost 2.66% to $150.62 as one of its suppliers, Foxconn, had to suspend operations in Shenzhen.
Other tech stocks also lost ground like Amazon (-2.52% to $2,837.06), Alphabet (-2.86% to $2,534.82) and chipmakers like Nvidia (-3.48 %) or AMD (-1.96%).
The laboratories manufacturing vaccines against COVID-19 had the wind in their sails like Moderna (+8.59% to 150.07 dollars) or Pfizer (+3.94% to 52.25 dollars).
Yields in the bond market stretched sharply as investors expect the U.S. central bank (Fed) to begin a cycle of rate hikes as early as Wednesday following a two-day monetary meeting.
Yields on ten-year Treasury bills climbed to 2.13%, their highest since July 2019.
Markets expect the Fed to hike overnight rates by a quarter of a percentage point (0.25%) for the first time since 2018.
Stocks in the financial sector were boosted by the prospect of higher rates: Visa gained 1.84% and American Express 2.91%.
Toronto Stock Exchange closes lower with commodities
(Toronto) – The Toronto Stock Exchange recorded its worst session in nearly two months on Monday, weighed down by concerns over a rise in COVID-19 cases in China, weak commodity prices and the best bond yields in several years ahead of the Federal Reserve’s interest rate hike, expected on Wednesday.
The Toronto Stock Exchange’s S&P/TSX Composite Index closed down 281.05 points to 21,180.78 points.
In the currency market, the Canadian dollar traded at an average rate of 78.27 cents US, down from 78.62 cents US on Friday.
On the New York Commodities Exchange, crude oil prices fell US$6.32 to US$103.01 a barrel, while natural gas fell 6.7 cents US to $4.66. US per million BTU.
The price of gold fell US$24.20 to US$1,960.80 an ounce and that of copper depreciated 10.3 cents US to US$4.52 a pound.
The Canadian Press
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