As in the European trading venues, the banking sector was the winner of the day. Optimism spread, for example, among Dow member JPMorgan, whose shares at the top of the index rose by a good six percent. In view of the rising key interest rates away from trading in stocks and bonds, the bank expects this year’s net interest income to be more than 56 billion US dollars – after 53 billion previously. The expert Jason Goldberg from the British investment bank Barclays commented that so far he had “only” expected 55 billion.
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In the wake of JPMorgan, other financial stocks also posted significant gains. Citigroup and Bank of America (Bofa) each posted gains of around 6 percent. Goldman Sachs shares rose 3.2 percent, while American Express rose 3.8 percent.
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However, the recently severely depressed prices, especially in the technology sector, are obviously attracting potential takeovers again. According to insiders, the chip company Broadcom is considering buying VMware , a software provider for cloud computing and data center virtualization. The Bloomberg news agency reported on talks between the two parties.
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Speculation about this initially drove VMware shares up by around twenty percent. Shortly before the market closed, the “Wall Street Journal” reported a purchase price of $140 per share, citing insiders, and the price gain rose by around a quarter. Broadcom papers, on the other hand, were down a good three percent.
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The analysis house Bernstein Research rated the possible deal as positive for Broadcom. Company boss Hock Tan can already show successful acquisitions in the software sector, wrote the expert Stacy Rasgon.
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After a disastrous week for retailers, bargain hunters are now taking action. Ross Stores, which alienated their investors with a profit warning on Friday, rose by almost ten percent. Walmart’s shares recovered with an increase of almost three percent.
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The euro benefited from the prospect of an end to negative interest rates in the euro area. After the US market closed, the common currency cost $ 1.0686. The European Central Bank (ECB) had set the reference rate at 1.0659 (Friday: 1.0577) dollars, the dollar has cost 0.9382 (0.9455) euros.
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On the bond market, the futures contract for ten-year Treasuries (T-Note Future) fell by 0.52 percent to 119.50 points. In return, the yield on ten-year government bonds rose to 2.87 percent./jcf/la/ngu
— by Jan Christoph Freybott, dpa-AFX —
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