Frankfurt US investors have responded with relief to President Donald Trump’s commitment to the trade agreement with China. They are also once again betting on a vigorous economic recovery from the consequences of the coronavirus pandemic.
The Dow Jones went off the market 0.5 percent higher on Tuesday at 26,156 points. The Nasdaq advanced 0.7 percent to 10,131 points. The tech-heavy index thus achieved its eighth consecutive daily profit – the longest winning streak since December, when it completed 11 consecutive sessions. The broad S&P 500 gained 0.4 percent to 3131 points.
While the economy was starting up again, many investors were sitting on large cash holdings and had missed the previous rally, said Thomas Hayes, manager at the asset manager Great Hill Capital. “This money will be forced to re-enter the market. So we still have some room for improvement. ”
Meanwhile, Trump claimed that the deal with China was “completely intact”. Earlier, his advisor Peter Navarro’s statement that the deal had died had caused unrest and price swings. “The White House confirmation has given the market a lot of confidence,” said Tim Ghriskey, chief investment strategist at Inverness Counsel.
Another uplift is the surprisingly strong increase in purchasing manager indices in Europe. “There is a lot of money looking for a home.”
Look at the individual values
At first, the optimists remained in the majority. Among other things, they accessed financial stocks. The shares of Bank of America, Citigroup or JP Morgan rose up to 1.7 percent.
Belonged to the stock values Translate Bio to favorites. The vaccine specialist’s papers jumped nearly 47 percent after the company announced it was expanding its collaboration with French pharmaceutical company Sanofi. Translate Bio is waving payments of more than two billion dollars.
The titles of Spirit AeroSysems on the other hand, fell by around 13 percent. The largest supplier to Airbus rival Boeing is asking its creditors for payment relief because of collapsing orders. The company only expects to sell parts for 72 Boeing aircraft in 2020. That is a third of the originally targeted amount.
Among the large Nasdaq stocks, some of which are also listed in the Dow, the shares of Microsoft the $ 200 price mark skipped the previous day. Even the titles of the online retailer Amazon and the social network Facebook jumped on the record train.
Percentage ahead of the tech giants, however Apple with an increase of 2.1 percent. The developer conference WWDC is the focus of the iPhone group this week. The group announced on the previous day that it would use its own processors instead of Intel’s on its Mac computers. Goldman Sachs analyst Rod Hall therefore believes in saving billions.
American Airlines shares were still in the downward vortex on Tuesday. They dropped by more than six percent. With the papers of the airline, in which the corona crisis has got into trouble with the whole branch, there is still a possible capital increase in the room.
A negative exception to the Nasdaq was the chipmaker’s shares Micron Technology at a discount of 2.6 percent. The experts from BMO Capital had graded the papers to a neutral vote due to diminished prospects in the memory chip industry.
The euro exchange rate rose above the $ 1.13 mark on Tuesday after a surprisingly robust purchasing manager index from the eurozone. In New York trading, $ 1.1305 was last paid for the common currency. The European Central Bank (ECB) had set the reference rate at $ 1.1318 (Monday: 1.1213). The dollar thus cost 0.8836 (0.8918) euros. Trend-setting ten-year bonds remained unchanged at 99 6/32 points on the US bond market. They paid 0.71 percent.
More: This is how the trading day on the Frankfurt Stock Exchange goes.