About half an hour before Wall Street trading began, slight gains were reported. Broker IG rated the leading US Dow Jones Industrial Index 0.3% higher at 30,809.4 points. Interest rate sensitive tech stocks on the Nasdaq 100 rose 0.1% to 11,868.8 points. The stock market barometers therefore tended to limit the previous day’s losses.
“What the Fed is doing, the European Central Bank must ultimately copy to prevent the euro from falling further,” commented Jochen Stanzl, market analyst at CMC Markets. If the pace is too high, the Fed could set in motion a spiral that could stall the global economy. A full percentage point increase should cause big waves in the market, as Stanzl warns.
Jürgen Molnar, a capital markets strategist at Robomarkets, thinks a 0.75 percentage point rate hike in the US is probably the best thing that can happen to the market. Most experts currently expect such a step. Only a minority think a whole point is possible. Speculation about even tighter monetary policy has recently gotten loud after the US inflation rate was higher than expected.
After the partial mobilization of the Russian military, investors should also keep an eye on armor values. Shares of Boeing, General Dynamics, Lockheed Martin, Northrop Grumman or Raytheon Technologies could benefit from this.
Prior to the start of trading, Sotera Health’s shares stood out in the largely immobile market. The service provider to the healthcare and pharmaceutical industry has lost a legal dispute over possible carcinogenic emissions from one of its facilities. The group, which has to pay the interested party about $ 345 million, filed an appeal; In light of the more than 700 pending cases, however, investors should expect further sensitive sanctions, JPMorgan analyst Casey Woodring wrote. Shares of Sotera Health lost about three percent in pre-market trading after losing double-digit percentages the previous day./jcf/tav/jha/
(AWP)
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