Quotes of futures for US stock indices are actively rising on Tuesday after the collapse of the indices over the previous few sessions.
“We are seeing some recovery in risk appetite on Tuesday after a very weak start to the week,” Citigroup strategists wrote.
The day before, the Dow Jones Industrial Average ended trading in the bearish trend zone (that is, it fell by 20% or more from the last peak) for the first time since the beginning of the coronavirus pandemic, and the Standard & Poor’s 500 updated its low since December 2020 on fears of consequences for the global economy from high inflation and rising interest rates.
“Increased volatility in the currency markets has exacerbated an already difficult situation in most asset classes,” said Richard Hunter of Interactive Investors.
At the same time, the leadership of the Fed is still making “hawkish” statements, not allowing the markets to hope for a slowdown in the rate hike.
In particular, the head of the Federal Reserve Bank of Cleveland, Loretta Mester, said that “we need the rate to be raised higher and remain high for longer than we previously thought.” “We can’t avoid the pain. It’s a very painful situation,” added Mester, who is a voting member of the Federal Open Market Committee (FOMC) this year.
Shares in Hertz Global Holdings surged 3% in US pre-trading on Tuesday on news that the car rental service has signed a memorandum with British energy company BP to develop a network of electric vehicle charging stations in North America.
The price of shares of memory chip maker Micron Technology is growing by 1.9%, despite the fact that analysts from several investment companies at once worsened forecast quotes for the company’s shares.
Capitalization of software developer Splunk Inc. increased by 2%. The company announced last night that CFO Jason Childe plans to step down in early November.
The value of the December E-mini futures on the Dow Jones index by 15:34 quarter rose by 1.11% and amounted to 29669 points. Quotation of the December E-mini futures on the S&P 500 rose by this time by 1.39%, to 3721 points. Futures on the Nasdaq 100 index for December added 1.63% and reached 11,501 points.
Quotes of futures for US stock indices are declining on Thursday, traders, among other things, are evaluating statistical data on the US labor market.
The number of Americans who first applied for unemployment benefits fell by 6,000 last week to 222,000, according to a report from the US Department of Labor. This is the lowest level since the end of May. According to the revised data, a week earlier, the figure was 228 thousand, and not 232 thousand, as previously reported.
Analysts, on average, expected an increase in the number of applications to 235 thousand compared to the previously announced level of the previous week, according to Bloomberg. Experts polled by Trading Economics also expected an increase in the indicator – up to 240 thousand rubles.
The US stock market could fall another 25% if the US economy enters a recession, Deutsche Bank AG strategists predict. The outlook for the equity market looks dim amid the expected fall in corporate earnings and the risk of a looming recession. Deutsche experts note that share prices are still high.
Shares of United Airlines Holdings Inc. cheaper by 0.85%. The American airline has invested $15 million in flying taxi maker Eve Air Mobility, the air carrier said in a statement.
Paper American Eagle Outfitters Inc. fall by 12.3%. The American clothing retailer reported a quarterly loss and refused to pay dividends, causing the company’s shares to drop sharply in pre-trading.
Amazon.com Inc stock price decreases by 0.5%. The American online retailer plans to continue expanding its staff, but not as actively as during the coronavirus pandemic, CEO Andy Jesse said at a Vox Media event in Beverly Hills.
Shares of Apple Inc. down by 0.75%. The company during the traditional autumn presentation introduced a new line of iPhone 14 smartphones, as well as a new generation of smart watches Apple Watch.
The value of the September E-mini futures on the S&P 500 fell by 0.18% to 3972.75 points by 15:40 square meters on Thursday. The quote of the September E-mini futures on the Dow Jones index decreased by this time by 0.05%, to 31,560 points. Futures on the Nasdaq 100 for September fell 0.36% to 12219.5 points.
A Ukrainian delegation will study best practices in trading in commodities futures in the United States, Yulia Vitka, the deputy head of the USAID Financial Sector Transformation project, wrote on Facebook. “A delegation from Ukraine is once again leaving for Chicago to get in-depth knowledge of the activities of commodities futures trading giants such as stock exchanges (CME), elevators (COFCO), traders (ADM) and to talk to the biggest U.S. associations in these areas, such as the National Grain Association and the National Futures Association,” Vitka wrote.
She stated the delegation will focus on the agricultural and power industries, in which Ukraine “has got all the prerequisites to turn into a regional hub.” According to her, the implementation of such an instrument will allow to promote fair competition and reasonable pricing and to attract investors.
“What can be done as of today? First of all, vote for draft law No. 9035 that not only introduces financial instruments but also creates respective safety levers so that the trade would remain within the established rules, which will be trusted and respected,” Vitka said.
As was earlier reported, experts from the National Commission on Securities and the Stock Market and the USAID Financial Sector Transformation project announced in late 2017 that within a span of five years Ukraine stands a good chance to create a futures contracts market for agricultural products that will be worth $8 billion and for energy products worth about $20 billion.
