NEW YORK (Dow Jones) – At the start of the new week, losses are looming on the US stock exchanges. Technology stocks in particular are likely to be sold: the Nasdaq future is 1.4 percent in the red, while the S&P future is down 0.8 percent. Rising bond rates raised fears that technology stocks in particular could be overvalued, observers explain the higher taxes in this segment.
Investors are betting on the economic recovery soon thanks to the increasing availability of vaccines against the coronavirus and the stimulus package of US President Joe Biden worth 1.9 trillion dollars. In conjunction with inflation concerns and the prospect of unexpectedly rapid increases in interest rates, these expectations would have led to a sell-off in government bonds, the market participants continue to report. Falling bond prices, however, led in return to rising yields. This in turn fueled concerns that the already highly valued stocks could lose their attractiveness compared to the low-risk bonds.
The expectation that the economy will recover is also manifested in a rotation from technology stocks, which led the rise in the stock markets after the pandemic-induced slump, into economically sensitive sectors such as finance and energy.
Otherwise, the news on Monday is thin. The Chicago Fed National Activity Index, which rose to a level of plus 0.66 in January, was published as part of economic data. The index of the leading indicators follows half an hour after the starting bell, also for January.
Engine failure affects Boeing and Raytheon
Among the individual values on the stock exchange, Boeing was set 3.0 percent lower before the market after a United Airlines Boeing 777-200 suffered an engine failure on the weekend. All aircraft in which the same engines from the manufacturer Pratt & Whitney are installed must be checked by order of the US aviation authority and remain on the ground for the time being. Raytheon Technologies, of which Pratt & Whitney is a part, fell 2.1 percent.
Meanwhile, airline stocks are benefiting from positive analyst comment from Deutsche Bank advising investors to buy the sector. The development of new corona infections and the progress made with vaccinations went “in the right direction”. American Airlines up 6.3 percent, Southwest Airlines 1.9 percent, Delta Air Lines 2.2 percent and Alaska Air Group 1.9 percent. United gain 1.7 percent despite the weekend incident.
The Tesla share is listed 2.8 percent lower before the market. There is no news about the company, but observers see a connection to the development of Bitcoin. In addition to the growing acceptance of digital currency by companies and rising inflation expectations, Bitcoin has recently been of remarks by the Tesla CEO Elon Musk been driven upwards. At the weekend, the cryptocurrency rose to just under $ 58,000 and is currently coming back more clearly. Musk has meanwhile written on Twitter that the prices of Bitcoin and Ether, another crypto currency, seemed “high” to him.
In the meantime, yields on the bond market continue to rise. Ten-year US bonds are yielding 1.37 percent, 3.6 basis points higher than on Friday.
Oil prices are increasing more clearly. Here, on the one hand, the players are betting on the economic recovery. On the other hand, the production losses in parts of the USA after winter storms provide support.
Maturity Yield Bp to VT Yield VT +/- Bp YTD
2 years 0.11 -0.4 0.11 -0.8
5 years 0.59 1.8 0.58 23.3
7 years 0.99 1.9 0.97 34.3
10 years 1.36 1.9 1.34 44.0
30 years 2.14 0.7 2.13 49.2
Forex last +/-% Mon, 8:18 am Fri, 5:28 pm% YTD
EUR/USD 1,2144 +0,18% 1,2110 1,2134 -0,6%
EUR/JPY 128,09 +0,15% 128,01 128,07 +1,6%
EUR/CHF 1,0888 +0,21% 1,0881 1,0857 +0,7%
EUR/GBP 0,8657 +0,10% 0,8659 0,8656 -3,1%
USD/JPY 105,49 -0,02% 105,72 105,56 +2,1%
GBP/USD 1,4028 +0,09% 1,3988 1,4017 +2,7%
USD/CNH (Offshore) 6,4701 +0,30% 6,4668 6,4531 -0,5%
BTC / USD 53,060.25 -7.55% 56,118.75 54,291.99 + 82.7%
ROHOEL zuletzt VT-Settl. +/- % +/- USD % YTD
WTI/Nymex 59,92 59,24 +1,1% 0,68 +23,2%
Brent/ICE 63,37 62,91 +0,7% 0,46 +22,5%
METALS last previous day +/-% +/- USD% YTD
Gold (Spot) 1.798,51 1.784,00 +0,8% +14,51 -5,2%
Silver (spot) 27.45 27.28 + 0.6% +0.17 + 4.0%
Platinum (Spot) 1,272.70 1,279.03 -0.5% -6.33 + 18.9%
Kupfer-Future 4,09 4,07 +0,4% +0,02 +16,2%
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(END) Dow Jones Newswires
February 22, 2021 08:49 ET (13:49 GMT)