Wednesday 14 April 2021
Coinbase brilliant debut
Banks are pushing the Dow into positive territory
In the past few meters, the Dow Jones Index ran out: the US benchmark index initially rose to a record high, but ultimately was unable to fully maintain the level. Nevertheless, investors are optimistic about the coming weeks. Coinbase’s IPO caused an uproar.
After a slow start, Wall Street set new records. In late trading, however, profits melted again, and the Dow Jones closed only slightly in positive territory. It was backed by Goldman Sachs, who took advantage of strong numbers. Additionally, JP Morgan and Wells Fargo opened their notebooks and then gave the starting signal for the reporting season.
And that mega IPO was joined by Queen Piece During the day. The share of the largest US cryptocurrency exchange currently recorded huge bonuses; At its peak, it was 70 percent higher than the reference price to $ 429.54, causing the company’s valuation to skyrocket to over $ 100 billion. The stock closed at $ 328.28, up 31 percent.
With data from the central bank, the cycles are back. Fed Chairman Jerome Powell said so US Federal Reserve It will reduce bond purchases long before the first rate hike. Meanwhile, the Beige Book spoke of a moderate growth rate and a slight increase in inflation in 2021.
The Dow Jones Index It rose 0.2 percent to 33,731 points. He set a new record in the process, as he did S & P-500That closed 0.4 percent in the red. The NasdaqThe composite (minus 1 percent) slowed stronger with higher yields after outperforming other indices on Tuesday.
Analysts are expecting “strong economic data”.
On the banking side, I made it above all JP Morgan. Bayt Al-Mal was able to multiply its earnings five times and thus performed better than expected. However, the financial group has at least benefited from the release of loan loss provisions. The price has decreased 1.9% – since the start of the year, however, the stock has increased by more than 21%.
Also Goldman Sachs (Plus 2.3 percent) are satisfied. The investment bank recorded a record profit after a six-fold increase, and the double income guarantees record achievement. Equity trading and write-offs in the lending business have performed particularly well. Wells Fargo (Plus 5.6 percent) provided first-quarter numbers that were higher than market expectations. The bank also benefited from the release of loan provisions.
“If the fundamentals take shape in the coming weeks, some high-profile corporate results and some very strong economic data should follow. The point is to see if the fundamentals are strong enough to justify what we’ve seen in the markets,” said market analyst Paul O’Connor of Janus Henderson Investors, said.
The price of crude oil is jumping
In the foreign exchange market decreased U.S. dollar To a slight weakness. She said that while inflation had risen, the worst fears were currently unfulfilled. In this regard, the Fed’s commitment to its loose monetary policy is gaining more credibility.
price oil He jumped – also thanks to the weak dollar. Above all, with the unexpectedly sharp drop in stocks in the US, the price jumped higher. Meanwhile, the International Energy Agency (IEA) believes that the global energy market is on the way to recovery. Despite a mixed economic recovery depending on vaccination progress, it raised its forecast for global oil demand in 2021.
You can read about trading in Frankfurt on our stock exchange day.
At the start of the US accounting season, European investors kept their powder dry. The DAX closed 0.2 percent down at 15,209 points. On the other hand, EuroStoxx50 increased 0.2 percent to 3,976 meters.
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