NEW YORK (dpa-AFX) – The world’s most famous index, Dow Jones Industrial, showed no direction in early trading on Tuesday. The other major US stock market indices fell moderately. The fact that China warned of valuation bubbles on the foreign capital markets is likely to have a negative impact. According to Guo Shuqing, who heads the China Banking and Insurance Regulatory Commission, the high prices on Wall Street and the European financial markets point in a different direction than the real economy.
While the Dow rose in early trading by 0.14 percent to 31 579.19 points, the market-wide S&P 500 fell by 0.28 percent to 3890.70 points. The tech-heavy Nasdaq 100 fell 0.65 percent to 13,196.28 points.
With their warning, the Chinese supervisory authority dampened the good mood at the start of the week, commented portfolio manager Thomas Altmann from QC Partners. “At the same time, the stock marketers’ attention is again being drawn more to the valuations of the stock markets. With an expected price / earnings ratio (P / E) of 23 and a historical P / E of 32, the US benchmark index S&P 500 is valued significantly more expensive than its average in its history . So the warning from China does not come out of nowhere, “he summed up.
The fact that the losses were kept within limits is likely due to the growing hope for the nearly two trillion US dollar aid program of the new US President Joe Biden. After it has already received approval in the democratically dominated House of Representatives, the Senate is now to discuss it this week, as the Democratic majority leader Chuck Schumer said./ck
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