(New York) US markets rebounded on Tuesday after their worst week since March 2020, catching up with the move started the day before by European markets, although the short-term outlook remains bleak.
Updated yesterday at 5:07 PM.
The Dow Jones is up 2.15%, the NASDAQ heavyweight is up 2.51%, and the broader S&P 500 is up 2.45%.
European indices, which rose sharply on Monday, continued their dynamism: Paris gained 0.75%, London 0.42% and Frankfurt 0.20%.
Whatever metric you’re looking at, the market has fallen way too low and it’s time for a rebound,” said Quincy Crosby of LBL Financial.
For the analyst, the move was underlined by operators who bet on a drop in indices and had to buy back to cover themselves.
While, according to Oanda analyst Craig Erlam, “all investors are looking for the low point” in lower prices since the beginning of the year, “many uncertainties in the outlook and ‘economic’ data are not showing encouraging signs.”
Judging by Tuesday’s trading volume on Wall Street, one of the lowest levels since the start of the year, the day after the holiday, the conviction is lacking and few investors are recovering in the market.
Last week, global stock markets tumbled after several central banks announced big rate hikes to fight inflation, such maneuvers that have dampened economic activity, and are already fragile.
The Federal Reserve in the United States significantly raised 0.75 percentage points. Thus, the two-day hearing of Chairman Jerome Powell in Congress, Wednesday and Thursday, will be the main point of interest for the markets.
In the bond market, the 10-year loan rate in the US rose to 3.28%, while rates in Europe remained stable after a sharp rise. The German 10-year loan was 1.76%, the French with the same maturity 2.32%.
Technology captures color
The indices were driven by the largest ratings assessments, all from the technology sector, from Apple (+3.28%) to Alphabet (+4.11%), via Tesla (+9, 35%), Amazon (+2.32%) or Microsoft (+2.46%) .
Kellogg . is divided
American Breakfast Champion Soon to Be Split (+1.65% to $68.86): Kellogg has announced that it is splitting its businesses into three separate companies, with each one listed on the stock exchange.
The US Supreme Court rejected Bayer
The US Supreme Court on Tuesday rejected the appeal of Monsanto, now owned by Germany’s Bayer Group (-2.05% in Frankfurt), leading to the final ruling to pay a $25 million pensioner who blames his illness on weed control, opening the door to billions of dollars in payments.
On the side of oil and currencies
Bitcoin was catching its breath on Tuesday, after dropping below $20,000 on Saturday, its lowest since December 2020. The number one cryptocurrency was up 2.91% at $20864 around 8:50 PM GMT.
As for oil prices, they have retreated from a high, buoyed by the prospects for improved demand in the short term in the United States and China.
A barrel of Brent North Sea crude for August delivery rose 0.45% to $114.65, and a barrel of West Texas Intermediate crude for July delivery rose 0.99% to $110.65.
In the foreign exchange market, the euro rose 0.22% against the dollar, to $1.0535.
The yen fell on Tuesday to a new 24-year low against the dollar, at 136.70 yen to the dollar, still weighed by the very accommodative monetary policy of the Bank of Japan, against that of the more steady US Federal Reserve.
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