NEW YORK (Dow Jones) – Fear of a second wave of the corona pandemic has caused strong levies on Wall Street at the end of the week. A number of US states, such as Arizona, Texas, South Carolina and Florida, saw new infections grow by over 30 percent from the previous week. Texas has already postponed downtime and regulatory plans. New regulations have even been issued in some states. US virologist Anthony Fauci sees a “serious problem” in the rise in Corona cases.
After a loosening of the banking regulation according to the Volcker Rule on the previous day ensured strong additions to the industry values, the sector became an additional burden factor on Friday due to the consequences of the bank stress test. The banking sector fell 6.1 percent.
In its stress test, the US central bank confirmed that the largest banks were sufficiently resilient to survive the corona crisis. At the same time, warning that a prolonged economic downturn could cause institutions to lose hundreds of billions of dollars in bad debt losses, calls for dividend payments to be kept in check and no treasury shares to be bought back in the third quarter. JP Morgan declined 5.5 percent, Goldman Sachs lost 8.6 percent, Wells Fargo lost 7.4 percent, and Morgan Stanley declined 3.6 percent.
The Dow Jones index fell 2.8 percent to 25,016 points after falling to 24,971 points in the daily low. The S&P 500 fell 2.4 percent to 3,009 points. The Nasdaq composite fell 2.6 percent to 9,757 points. There were a total of 443 (Thursday: 1,920) course winners and 2,550 (1,041) losers. 46 (88) titles closed unchanged.
Oil prices with taxes
Uncertainty in the corona virus crisis led to a stronger influx on the US bond market. The yield on ten-year US government bonds fell 3.6 basis points to 0.65 percent. In addition, the mood among US consumers in the second reading was 78.1 below the first publication at 78.9. Economists, on the other hand, had expected a level of 79.0.
The dollar hardly benefited from its “safe haven” status – the dollar index showed little change in percent. The fear of a second wave of coronavirus is causing increasing risk aversion among investors, it said.
After initial profit taking, the gold price also rose. The price of the troy ounce rose 0.4 percent to $ 1,771 after the stock market posted strong royalties. Traders are quite certain that in the medium term, given the massive increases in money supply caused by the flooding of central banks, an attack by the gold bulls on the sound barrier of $ 1,800 is imminent.
Quotations eased on the oil market. Here worries about a further downturn in the economy burdened – with corresponding negative effects on demand. The price of a barrel of the US grade WTI fell 1.5 percent to $ 38.15, Brent fell 0.8 percent to $ 40.74. For WTI there was a drop of 3.0 percent on a weekly basis. Since the corona pandemic apparently affects the United States more than Europe, the economic worries in the United States are somewhat more pronounced. “The infections in the US are putting a damper on demand projections in the US,” added a dealer.
Facbook shares under pressure – Nike weak by numbers
The decision of the consumer goods group Unilever to stop advertising on Facebook and Twitter for at least the rest of the year caused the Facebook share to fall by 8.3 percent. For reasons, the group referred to hate speech and divisive content on the Facebook platforms. The Twitter share lost 7.4 percent.
Unilever’s decision marks a further escalation in efforts to force changes on Facebook and other platforms. More than 90 companies have now announced their intention to stop advertising on Facebook since civil rights groups have called for the July spending to be deducted from Facebook. Facebook CEO Mark Zuckerberg announced further steps by the company in response on Friday.
Nike fell 7.6 percent. The sporting goods manufacturer recorded a significant drop in profits and sales due to the corona virus crisis in the fourth business quarter and failed to meet expectations.
Progress software only fell by 0.6 percent. The software manufacturer has raised its outlook for the current year, although profits in the second quarter were below expectations. The share buyback program is expected to resume after a pandemic break.
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INDEX last +/-% absolute +/-% YTD
DJIA 25.015,55 -2,84 -730,05 -12,34
S&P-500 3.009,05 -2,42 -74,71 -6,86
Nasdaq-Comp. 9.757,22 -2,59 -259,78 8,74
Nasdaq-100 9.849,36 -2,50 -252,48 12,78
US bonds
Maturity Yield Bp to VT Yield VT +/- Bp YTD
2 years 0.17 -2.3 0.19 -103.4
5 years 0.30 -3.3 0.33 -162.4
7 years 0.49 -3.4 0.53 -175.7
10 years 0.65 -3.6 0.68 -179.7
30 years 1.37 -6.2 1.44 -169.4
CURRENCIES last +/-% Fri, 8:17 Thu, 17:31% YTD
EUR/USD 1,1227 +0,09% 1,1214 1,1219 +0,1%
EUR/JPY 120,34 +0,09% 120,08 120,24 -1,3%
EUR/CHF 1,0641 -0,03% 1,0637 1,0641 -2,0%
EUR/GBP 0,9098 +0,74% 0,9031 0,9039 +7,5%
USD/JPY 107,20 +0,01% 107,08 107,19 -1,5%
GBP/USD 1,2341 -0,66% 1,2418 1,2412 -6,9%
USD/CNH (Offshore) 7,0856 +0,04% 7,0824 7,0809 +1,7%
Bitcoin
BTC / USD 9,161.01 -1.43% 9,200.51 9,234.26 + 27.1%
ROHÖL last VT-Settl. +/-% +/- USD% YTD
WTI/Nymex 38,15 38,72 -1,5% -0,57 -34,6%
Brent/ICE 40,74 41,05 -0,8% -0,31 -35,3%
METALLE last day before +/-% +/- USD% YTD
Gold (Spot) 1.771,07 1.763,75 +0,4% +7,32 +16,7%
Silver (spot) 17.83 17.79 + 0.2% +0.04 -0.1%
Platinum (Spot) 807.23 809.00 -0.2% -1.78 -16.4%
Kupfer-Future 2,66 2,66 -0,1% -0,00 -5,5%
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DJG / DJN / rose
(END) Dow Jones Newswires
June 26, 2020 16:19 ET (20:19 GMT)
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