Investors are now expecting US interest rates to rise to well over five percent. This affects the buying mood of investors. Some grab it in the face of low prices, others keep interest rate concerns from investing.
Investors in the US only cautiously ventured back onto the trading floor after the week with the heaviest losses of the year. The standard value index Dow Jones was 0.22 percent higher at 32,889.09 points. The broad S
According to dealers, some bargain hunters have now used the lower courses to get started. “February is the second-worst month for the stock market on an annualized basis,” said investment strategist Sam Stovall of CFRA Research in New York. Investors were therefore hoping for a short-term recovery, at least from a seasonal perspective. Nevertheless, interest rate concerns continued to have investors firmly in their grip. Last week’s macro data brought the market down to earth, CityIndex market strategist Fiona Cincotta said.
Investors are now expecting at least three further interest rate hikes by the US Federal Reserve and an increase in US key interest rates to well over five percent. The investment bank Morgan Stanley also assumes that a rate cut cannot be expected before March 2024.
In terms of individual values, Tesla shares rose by more than five percent due to a faster than planned ramp-up of production at the Grünheide plant in Brandenburg. The mark of 4000 cars produced per week was reached three weeks earlier than originally intended, as can be seen from a production plan.
Investors also grabbed Seagen after the US pharmaceutical company Pfizer was considering taking over the biotech company for more than $30 billion, according to the Wall Street Journal. The titles gained more than ten percent. In return, investors reacted disappointed to reports of an initially failed takeover of Manchester United. Shares in the English soccer record champions fell by up to 9.22 percent in New York, hitting their lowest level in three months. The newspaper “Financial Times” reported on Saturday, citing insiders, that the previous bids – including one by the Qatari Sheikh Jassim Bin Hamad al Thani – were not high enough for the current owners – the US Glazer family.
Meanwhile, the shares of the US railroad company Union Pacific gained 10.09 percent due to a planned change of boss. CEO Lance Frist announced on Sunday that he intends to resign later this year to clear the way for a new leadership. The asset manager Soroban Capital Partners, which has a stake in the group of around 1.6 billion dollars, had previously pushed for a change of boss.
