Frankfurt, New York The sharp rise in inflation in the US didn’t hurt the New York stock market on Wednesday. The US leading index Dow Jones Industrial gained 0.1 percent to 36,290 points. The technology-heavy Nasdaq 100 advanced 0.4 percent to 15,905 points and the broad S&P 500 gained 0.3 percent to 4,726 points. The dollar index, which reflects the exchange rate to major currencies, fell 0.7 percent to a two-month low of 94.3 points.
US consumer prices rose as sharply in December as they did last in 1982. At seven percent over the same period last year, however, the increase remained in line with expectations. “Seven percent inflation, so what ?!” asked analyst Konstantin Oldenburger from the online broker CMC Markets. “The data only confirmed the market’s expectations that the US Federal Reserve will soon raise interest rates.”
Peter Cardillo, chief economist at Spartan’s financial adviser, interpreted the numbers as a sign that price pressure will soon be easing. His colleague Neil Wilson from the online broker Markets.com, on the other hand, doubted it would ease off. “Unless the US Federal Reserve, the Fed, is doing more than it has planned so far. A rate hike of 50 basis points in March would be a start.
For bond investors, however, these considerations did not seem to play a role. They took hold of US Treasuries again and pushed the yield on ten-year Treasuries to 1.75 percent.
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Nickel at ten-year high
Nickel continued to soar on the raw materials market. The industrial metal gained 4.4 percent at times and at $ 21,042.5 per ton was as expensive as it was more than ten years ago. Inventories have halved in the past five months and are now as low as they were around two years ago. The reason for this is the electric car boom, says Commerzbank analyst Daniel Briesemann. “Because batteries with a high nickel content are still preferred by car manufacturers.”
In the slipstream, the tin required for food cans reached a record high of $ 40,411.5 per ton. Copper fell to $ 9,664.60. Against this background, the shares of mining companies such as Freeport-McMoRan, BHP or Rio Tinto gained up to four percent.
Thanks to the dwindling fear of a setback for the global economy from the Omikron variant of the coronavirus, investors also stocked up on crude oil. The US variety WTI rose 1.8 percent to $ 82.79 per barrel (159 liters). “Omikron is now yesterday’s story,” said Luca Paolini, chief investment strategist at asset manager Pictet.
Look at the individual values
Ocugen: One of the winners on the US stock market was Ocugen with a price increase of 2.4 percent. According to development partner Bharat Biotech, a booster vaccination with the coronavirus vaccine from the two pharmaceutical companies neutralizes both the delta and the omicron variant. The serum has an emergency approval from the World Health Organization.
Biogen: The papers of Biogenic on the other hand, fell 6.7 percent and at $ 225.34 they were as cheap as they were two and a half years ago. The US health insurance company Medicare wants to cover the cost of treatment with the biotech company’s new Alzheimer’s drug only for patients who take it as part of clinical trials. In doing so, they destroy hopes of sales success for the controversial drug, said JPMorgan analyst Cory Kasimov. The titles of the Biogen rival Eli Lilly, who is researching similar drugs, fell 2.4 percent.
Salesforce: In the Dow, the titles of the cloud computing specialist Salesforce were ahead with a plus of 1.3 percent. The shares of Goldman Sachs were at the back of the leading index with minus 3.2 percent. This Friday, JPMorgan, Citigroup and Wells Fargo, the first major US banks to present their quarterly figures. Their prices increased moderately in the middle of the week. Goldman Sachs’ quarterly report will follow next Tuesday.
Tesla & Co .: A sales boom in China encouraged investors to get involved with electric car manufacturers. The shares of Tesla, Nio, Li Auto, Sono and Xpeng were up to 5.7 percent more expensive. Last year, sales of electric vehicles in the world’s largest car market rose by almost 160 percent to 3.52 million units.
More: These eight stocks are the bearers of hope for the stock market year 2022.