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USA / Biden and Yellen MARKETS charge Dow above 30,000 points 11/24/20



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From Florian Faust

NEW YORK (Dow Jones) – Wall Street hit new records Tuesday. For the first time, the Dow Jones index jumped over the 30,000 mark. Investors celebrated that political uncertainty was a thing of the past. Because of the US President Donald Trump wants to clear the way for official business transfer to election winner Joe Biden – which removes a large element of uncertainty. Another positive reaction on the stock market was that Biden was a former head of the US Federal Reserve Janet Yellen want to make the new finance minister. This headline had already backed into business the day before late.

The Dow Jones Index climbed 1.5 percent to 30,046 points, the S&P 500 and Nasdaq Composite improved 1.6 and 1.3 percent, respectively. Initial information indicated that there were 2,373 (Monday: 2,437) price winners, 781 (717) losers and 52 (50) unchanged shares on the Nyse. “While the election results did not pose a serious threat to the market, investors are shouting the elimination of a potentially chaotic political process,” said Peter Cardillo, Spartan Capital Securities market economist.

One of Yellen’s first decisions could be to extend a series of measures agreed by the Federal Department of Fund and Treasury in the spring. Last week, Treasury Secretary Steven Mnuchin refused to extend several emergency loan programs set up with the Fed and ending December 31st. “It has clearly shown that it is prepared to reduce the downside risks to the economy,” said Allianz market strategist Eric Barthalon. “This is good news from a market perspective.”

He soon hoped that the availability of the vaccine would push weak data into the background. Because the mood among US consumers weakened significantly in November and also exceeded expectations. According to traders, the mood should improve rapidly with the start of the first mass vaccinations.

Oil prices high by eight months

Oil prices rose again, marking their highest level since March. Hopes for a vaccine soon and tensions in the Middle East remain grounded. Despite the corona restrictions, travel activities increased and fuel demand increased. Prior to the holiday “Thanksgiving”, air passenger numbers increased significantly in the USA and reached their highest level since mid-March. The price of a barrel of U.S. light oil of the WTI variety rose 4.3 percent to $ 44.91, while the European reference oil of the Brent variety rose 3.9 percent to $ 47.86.

The dollar surrendered its previous day’s earnings – the WSJ dollar index lost 0.1 percent. The euro received some tails from the German Ifo index, which showed for November that the assessment of the current business situation has remained at an astonishingly high level.

On the other hand, the price of gold remained under pressure and fell to its lowest level in four months. “A third vaccine candidate on the market is causing major reevaluations of the growth trajectory of the world economy,” said Oanda market analyst Jeffrey Halley. With the transition to the Biden presidency now coming to light, a large element of uncertainty will disappear as well. The troy ounce dropped another 1.7 percent to $ 1,808.

US government bonds were avoided again with the general positive sentiment among investors. The ten-year paper yield went up another 2.8 basis points to 0.88 percent. Even weak US consumer confidence data did not support.

Oil stocks rally

With the rise in oil prices, sector stocks were also sought: Exxon Mobil rose 6.7 percent, Chevron rose 5 percent. Oil service provider Baker Hughes’ stocks gained 5.2 percent. The sector index rose 5.2 percent.

JP Morgan went ahead 4.6 percent. A subsidiary of the big bank had settled a dispute with the WNO currency regulator over inadequate internal controls. In return, the US bank has to pay a $ 250 million civil fine. Best Buy’s shares plummeted above market expectations, despite business figures. Consumer electronics retailer titles lost 7 percent. In retail, reference was made to forecast statements. The company does not expect to be able to repeat sales growth in the third quarter of the fourth period.

Urban Outfitters stocks lost 4.8 percent although the retailer’s quarterly results were good. Christmas business could suffer from new corona restrictions, he said. JM Smucker rose 1.5 percent. The grocery peanut butter business had returned to the growth path of market share in the last period. The company posted business results in the second period above market expectations.

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Final INDEX + / -% absolute + / -% YTD

DJIA 30.046,24 1,54 454,97 5,28

S & P-500 3.635,41 1,62 57,82 12,52

Nasdaq-Comp. 12.036,79 1,31 156,15 34,15

Nasdaq-100 12.079,81 1,46 173,87 38,32

US Bonds

Bp to VT Maturity Product VT +/- Bp YTD Product

2 years 0.16 -0.4 0.16 -104.6

5 years 0.40 1.6 0.38 -152.9

7 years 0.64 2.0 0.62 -160.5

10 years 0.88 2.8 0.85 -156.4

30 years 1.60 5.1 1.55 -146.4

DEVICE lasts + / -% Tue, 8:18 am Thu, 5:22 pm% YTD

EUR / USD 1,1890 + 0,43% 1,1852 1,1841 + 6,0%

EUR / JPY 124,18 + 0,38% 123,79 122,99 + 1,9%

EUR / CHF 1,0833 + 0,28% 1,0805 1,0798 -0,2%

EUR / GBP 0,8898 + 0,13% 0,8884 0,8952 + 5,1%

USD / JPY 104,45 -0,04% 104,45 103,88 -4,0%

GBP / USD 1,3364 + 0,32% 1,3341 1,3225 + 0,9%

USD / CNH (Offshore) 6,5790 -0,04% 6,5790 6,5764 -5,6%

Bitcoin

BTC / USD 19,107.00 + 3.66% 18,427.50 17,993.51 + 165.0%

ROHÖL VT-Settl last. + / -% +/- USD% YTD

WTI / Nymex 44,89 43,06 + 4,2% 1,83 -19,9%

Brent / ICE 47,87 46,06 + 3,9% 1,81 -22,0%

Last day METALS + / -% +/- USD% YTD

Gold (Spot) 1.806,75 1.838,30 -1,7% -31,56 + 19,1%

Money (spot) 23.23 23.63 -1.7% -0.39 + 30.2%

Platinum (Spot) 962.00 930.00 + 3.4% +32.00 -0.3%

Kupfer-Future 3,30 3,26 + 1,3% +0,04 + 16,9%

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Contact the author: [email protected]

DJG / DJN / flf

(ENDS) Dow Jones Newswires

November 24, 2020 16:16 ET (21:16 GMT)

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