Börse Express – New York shares: Dow continues to recover after the previous day’s break

NEW YORK (dpa-AFX) – The leading US index Dow Jones Industrial
resumed the recovery course it had interrupted at the beginning of the week on Tuesday. Financial stocks were buoyed by the prospect of the central bank raising rates potentially steeper than previously expected. In addition, pleasing business figures from the sports goods manufacturer Nike ensured for a good mood. In addition, investors were relieved to learn that oil prices did not continue their recent strong rise for the time being.

The Dow rose by 0.78 percent to 34,824.12 points and thus approached the 35,000 point mark last exceeded in mid-February. For the market-wide S&P 500 was up 1.12 percent to 4511.07 points, and the tech-heavy select index Nasdaq 100 gained 1.85 percent to 14,642.27 points.

The day before, central bank chief Jerome Powell had already brought up the possibility of faster interest rate hikes in view of the “much too high” inflation rate. The Fed could also raise interest rates by more than 0.25 percentage points at upcoming meetings of the central bank if necessary. However, Powell’s statements only caused uncertainty for a short time and were interpreted positively on Tuesday.

“Confidence in the Fed still prevails among equity investors,” said fund manager Thomas Altmann from asset manager QC Partners. Here everyone assumed that the Fed would only raise the key interest rate so much that it would not harm the economy.

Analyst Jeffrey Halley from broker Oanda warned against being too careless. In addition to the interest rate hikes, he refers to the Fed’s considerations of reducing the balance sheet, which has been swollen as a result of the Corona aid programs, which would roughly correspond to a further interest rate hike. This raises the question of whether the Fed’s growth forecasts for the economy in this environment are correct. The abrupt switch from loose to tight monetary policy, while the Ukraine war is sending another wave of costly inflation across the world, does not inspire confidence. At the same time, an end to the war is not in sight.

Nike shares rose among the Dow’s best performers
by 2.7 percent. The Group accelerated its revenue growth in the third fiscal quarter. Analysts responded with higher price targets. Expert Kate McShane from the bank Goldman Sachs praised the China business in particular, which had improved unexpectedly compared to the previous quarter.

In financials, Goldman Sachs shares gained good one and those from JPMorgan
more than two percent. Higher interest rates would strengthen the earning power of the big banks.

For the New York-listed papers of the Chinese internet giant Alibaba it even went up by a good 12 percent after he had announced further share buybacks worth billions.

The shares of the English football club Manchester United
benefited from a buy recommendation from Deutsche Bank with an increase of one and a half percent to just under 14 US dollars. Analyst Connor Murphy sees significant upside potential up to $18. The stock valuation, which is low compared to the industry, is not appropriate. Manchester United is one of the world’s best-known and most valuable sports franchises./la/ngu

 ISIN  US2605661048  US6311011026  US78378X1072

AXC0339 2022-03-22/19:19

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