NEW YORK (awp international) – The US stock exchanges are likely to recover somewhat from their recent losses on Tuesday. In view of positive signals from the Asian trading venues, the broker IG estimated the leading index Dow Jones Industrial 1.14 percent higher at 32,591 points three quarters of an hour before the start of trading.
Asian equity markets posted modest gains. According to experts, there is increasing confidence that the corona lockdown in Shanghai could be relaxed. In the Chinese metropolis of 25 million inhabitants, no new infections were reported for the third day in a row, which is a condition for easing the strict virus measures. The harsh measures to contain the virus are considered one reason for the global supply chain problems that are threatening global growth.
In the meantime, good news came from the USA: Consumption in the world’s largest economy shows no signs of weakness. Retail sales picked up again in April, albeit slightly weaker than expected.
Among individual stocks, Walmart shares fell nearly 7 percent in premarket US trading. The largest US retailer is groaning under high costs amid inflationary pressures and supply chain issues. After a significant drop in profits in the first quarter, the shopping giant cut its annual targets.
After a successful first quarter, the DIY group Home Depot is more optimistic about the year as a whole. The papers went up by around four percent before the market. Retailers especially praised the surprising increase in like-for-like sales.
Twitter’s shares are likely to remain under pressure, losing more than 1 percent in premarket trading. Tech billionaire Elon Musk bites his allegation that the service has many more fake accounts than stated when it announced its purchase of the company. It remains unclear whether he wants to push the price down – or is trying to prepare the ground for an exit from the deal./la/eas
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