Equities New York outlook: caution dominates again – losses expected

The broker IG assessed the leading index Dow Jones Industrial around three quarters of an hour before the start of trading in the middle of the week with almost half a percent in the red at 33,020 points. The technology stock-heavy Nasdaq 100 was expected with similar discounts.

The European Central Bank (ECB) is likely to herald the turnaround in interest rates for July in the euro zone this Thursday and at the same time decide to end its asset purchases. The Fed will make its next interest rate decision next week. The US Federal Reserve has already raised interest rates significantly in the fight against inflation and recently tightened the course even more. Fresh inflation data from the US will be released on Friday.

The nervousness on the markets is high – and so are the price fluctuations. The day before, a friendlier mood prevailed on Wall Street after initial losses, which means that the most important indices were able to continue the price recovery at the beginning of the week with further gains.

But concerns about the economy keep catching up with investors. Because not only the consequences of the war in Ukraine and the Western sanctions are slowing down the global economic recovery, the corona pandemic with the lockdowns in China is also having a negative effect: Most recently, the World Bank and the Organization for Economic Cooperation and Development (OECD) two expert bodies have withdrawn their forecasts for global economic growth this year. This is grist for the mill of the pessimistic market participants, commented expert Andreas Lipkow from Comdirect.

Against this background, positive company prospects like that of the soup manufacturer Campbell are well received by investors – the company had raised its sales forecast and the share went up significantly before the market.

For the other individual values, Novavax again stood out before the market after an advisory committee of the US Food and Drug Administration (FDA) voted in favor of emergency approval for the corona vaccine NVX-COV2373 for adults. The papers had been suspended from trading until the end of the previous day in anticipation of this news. Apparently, investors took profits before the official start, the pre-market plus fell by more than half to around eight percent. The Novavax vaccine is considered an alternative to the mRNA vaccines from Moderna , Pfizer and Biontech , whose prices have come under pressure in return.

Some Chinese companies listed on the Nasdaq, such as Alibaba, Baidu and Co, should also be worth a look, because previously the hope of a easing regulatory stranglehold from Beijing had caused technology stocks to rally in Hong Kong.

On the other hand, the shares of the tobacco group Altria could come under pressure after Morgan Stanley’s recommendation to underweight them./tav/jha/

(AWP)

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