Börse Express – New York shares Outlook: Dow & Co are robust despite economic concerns

NEW YORK (dpa-AFX) – The US stock market is also likely to defy the economic burdens caused by the war in Ukraine and the tightening of US monetary policy on Tuesday. The fact that the oil price rally has at least taken a break provides some relief. Broker IG appraises the Dow Jones Industrial around an hour before the start of trading to 34,684 points and thus around 0.38 percent above the previous day’s close. The tech-heavy select index Nasdaq 100 is expected to be hardly changed at 14,380 points.

At the start of the week, Wall Street largely defied statements by US Federal Reserve Chairman Jerome Powell that interest rates might be tighter than previously expected. In view of the “much too high” inflation rate, Powell had brought up the possibility of faster increases in the key interest rate. The Fed could also hike interest rates by more than 0.25 percentage points at upcoming meetings of the Federal Reserve Board if needed.

“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 warns 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 shift from loose to tight monetary policy as the Ukraine war sends another costly wave of inflation across the world does not inspire confidence. At the same time, an end to the war is not in sight.

On the corporate side, shares of Nike rose
up more than 5 percent in premarket US trading. The sporting goods maker accelerated its sales growth in the fiscal third quarter. Analysts responded with higher price targets. Kate McShane from the bank Goldman Sachs particularly praised the China business, which had unexpectedly improved compared to the second business quarter.

Also for the shares of the Chinese Internet giant Alibaba, which are listed in New York went up significantly after he announced more billion-dollar share buybacks.

Also the shares of the English football club Manchester United
could after a buy recommendation by Deutsche Bank be worth a look. Analyst Connor Murphy sees significant price potential up to 18 US dollars. 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./mis/eas

 ISIN  US2605661048  US6311011026  US78378X1072

AXC0245 2022-03-22/14:03

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