Frankfurt Fears of rising inflation and the upcoming reporting season dampened sentiment on Wall Street on Monday. The Dow Jones index of the standard values and the broader S&P 500 turned after slight gains at the beginning of trading in the red and were listed 0.2 percent weaker. The Nasdaq technology exchange was also unable to maintain its initial profits.
“The dangerous spiral of rising energy prices, inflation expectations and yields on the bond market keeps turning and nips any emerging buying mood on the stock market in the bud,” said chief analyst Jochen Stanzl from brokerage firm CMC Markets. Dax and EuroStoxx50 also gave way at the beginning of the week.
Investors fear that the current inflation is not just a temporary phenomenon, as forecast by the leading monetary authorities, but is leading to stagflation. Economists understand this to be the combination of inflation and a stagnating economy. It is a rare phenomenon and experts say it is difficult for central banks to get out of such a phase.
So far, US investors have assumed that the Federal Reserve will soon stop its ultra-loose monetary policy and buy fewer bonds. According to analysts, the Fed could change course again due to rising oil prices.
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“The investors are now weighing up how they should deal with the changed framework conditions,” said Stanzl. For better or worse, the stock market has to get used to an environment of higher inflation and higher interest rates.
Oil price rally continues
The price of US WTI oil rose at times by more than three percent to $ 82.18 per barrel (159 liters), the highest level since the end of 2014. The Brent variety from the North Sea rose to a three-year high from $ 84.60. In the course of the economic recovery, coal and gas prices have also risen significantly, making oil more attractive as a fuel for generating electricity and driving up prices on the crude oil markets.
According to stockbrokers, there is no end to the rally in sight. “We see a very strong demand for energy in Asia and Europe before the coming cold season. The oil prices will therefore continue to rise in the near future, ”said Jim Ritterbusch, head of the energy consulting firm Ritterbusch and Associates.
Stockbrokers were eagerly awaiting the upcoming start of the quarterly reporting season. In the middle of the week, the US banks will allow you to inspect their books. The stocks of JPMorgan and Goldman Sachs were among the biggest losers with a minus of around 1.5 percent each.
In contrast, shares in energy companies were in demand because of the higher energy prices. The titles of Kinder Morgan, Diamondback Energy and Schlumberger increased.
Look at individual values
Southwest Airlines: The airline canceled more than 1,800 flights over the weekend due to bad weather, problems with air traffic control and a lack of staff. Southwest rejected speculation that the high number of flight cancellations compared to other airlines was due to protests by employees against a Covid-19 obligation. Southwest falls about three percent on Wall Street.
Tesla: The titles of the electric car manufacturer rose by 1.2 percent. The group assumes that the first cars from the new plant near Berlin will roll off the assembly line this year.
Merck: The US drug maker has announced that it will submit an emergency approval for its oral Covid-19 drug. The company published positive study results earlier this month. Merck papers give up their gains and are 0.7 percent lower in the evening.
Apple: The company has asked a judge to postpone changes to its app store. These would allow developers to bypass Apple’s in-app payment system and should go into effect on December 9th. Company shares rise 0.4 percent.
Starbucks: The shares of the coffee chain will initially rise 1.7 percent. Deutsche Bank has upgraded the share from “Hold” to “Buy”. In the course of trading, however, the paper gives up the gains again.
SoFi Technologies: The fintech company’s share is up 14 percent. Morgan Stanley previously praised the company for its “strong sales growth story”.
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