NEW YORK (dpa-AFX) – Glimmers of hope in the Ukraine conflict did not help the US stock market at the start of the week. Unlike the stock exchanges in Europe, the Dow Jones Industrial was unable to make any profits on Monday. The US leading index ended trading unchanged at 32,945.24 points. The market was saying that the potential for recovery was greater in Western Europe, since fears of the consequences of the war had recently become much more noticeable there. The New York Dow is currently only slightly below pre-invasion levels.
Other US indices even slipped clearly into the red on Monday: the market-wide S&P 500 fell by 0.74 percent to 4173.11 points and the technology-heavy Nasdaq-100 even dropped by 1.92 percent to 13,046.64 points. He was weighed down by sharp price losses in the US notes of Chinese tech companies. Due to a time change that had already taken place in the USA, trading in European time ended one hour earlier than usual.
The fourth ceasefire talks between Russia and Ukraine were held on Monday – this time via video link. According to information from Kyiv, talks about an end to the fighting have been interrupted, but are to be continued this Tuesday. It is a technical break for talks in working groups and a “clarification of individual definitions,” explained Ukrainian presidential adviser Mykhailo Podoliak.
Some relaxation spread on the oil market on Monday, with prices falling significantly from their recent high level. This drove investors out of the most popular US oil stocks such as Chevron and ExxonMobil, which lost 2.5 percent and 3.6 percent.
On the Nasdaq stock exchange, the shares of Chinese technology companies listed in New York attracted attention with price slumps. The papers from Trip.com, Pinduoduo, Baidu, JD.com and Netease dropped between 8.4 and 20.5 percent. The papers of the online giant Alibaba traded in the USA fell by 10.3 percent.
The market said that these values were joined by new regulatory concerns about China’s position in the Ukraine war and about lockdown measures caused by the pandemic, which had been noticeable for some time. As a result, the major US bank JPMorgan downgraded such values in series, for many the big bank even turned its vote from a previously positive assessment to a negative “underweight”. Analyst Alex Ya considers the Chinese Internet industry to be unattractive for the next six to twelve months.
Apple shares were also sold by investors in connection with new developments in China. They fell by 2.7 percent due to concerns about possible production bottlenecks. After a corona lockdown was imposed in Shenzhen, southern China, Apple partner Foxconn stopped production in the metropolis at its manufacturing facility, which also manufactures iPhones.
Bank prices, on the other hand, developed quite robustly before the interest rate decision by the US Federal Reserve is due on Wednesday – with an expected first interest rate hike since 2018. JPMorgan managed a plus of one percent in the Dow and on the broader market the shares of Bank of America 2 percent to. In general, rising capital market interest rates are a good sign for the day-to-day business of banks.
A bright spot on the Nasdaq was Moderna stock, which jumped 8.6 percent, accompanied by Biontech, up 12 percent, and Biontech partner Pfizer, whose shares rose almost four percent. It was said on the market that the mRNA vaccine values are becoming more imaginative due to the increasing number of corona cases. From the point of view of a stockbroker, the recent lockdown measures in China also help.
The euro was supported on Monday. The common currency was last seen at $1.0953 in US trade after hitting just under $1.10 a few hours earlier. The European Central Bank set the reference rate at 1.0960 (Friday: 1.0990) dollars. The dollar thus cost 0.9124 (0.9099) euros.
US Treasuries, on the other hand, fell. The futures contract for ten-year Treasuries recently fell by 0.91 percent to 124.80 points. The opposite return reached 2.14 percent, its highest level since mid-2019./tih/jha/
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