Trade overview: current reports, trends, indices, stock prices, bonds, foreign exchange and commodities and analyst recommendations
Trading on Wall Street moved into a mixed trend, with the Nasdaq paring gains and the Dow Jones and S&P 500 moving into slight declines.
In the foreign exchange market, the shekel once again went down against the dollar after Prime Minister Benjamin Netanyahu’s speech, and the dollar traded at over NIS 3.60.
The gains on Wall Street are moderating. The Nasdaq index is now climbing 1.3%, the Dow Jones is up 0.4% and the S&P 500 is advancing 0.7%. At the same time, US government bond yields continue to decline, while the dollar trades unchanged In Israel, it weakened by 1.2% against the shekel and its value was 3.56 shekels.
Netflix continues to stand out positively with a sharp increase, against the background of YipitData’s report of a nice addition of subscribers in Canada (gross). also meta (facebook) andSnap are climbing, in part after TikTok CEO Xu Zichu testified before the House Energy and Commerce Committee. The company faces a potential US ban over privacy concerns.
The retail giant Walmart will lay off hundreds of workers at its US e-commerce facilities as part of its preparation for a tougher year and an economic slowdown.
At the same time as the positive trend on Wall Street, the declines in the European stock markets were slightly reduced and they closed in a mixed trend. The German DAX index recorded a slight decrease, the British Potsey shed 0.9% after the interest rate hike, while the French CAC rose 0.1%.
The dips in the crypto market have been almost completely wiped out. Bitcoin is down about 0.7% and its level is now 28.4 thousand dollars – a 15% increase in a week – and Ethereum even moved to an increase of 1.2% and is trading around 1,825 dollars – a jump of 10.5% in the week.
Yields continue to decline in the US government bond market. The 10-year bond yield falls by 6 points to 3.44% and the two-year bond yield falls by 10 points to 3.87%.
Among American banks, First Republic Delete the increase he registered and now drops another 9%, Charles Schwab Shedding 1.5% as well Bank of America registers a slight decrease.
The gains on Wall Street are getting stronger, and the Nasdaq index is already up nearly 2.5%. The Dow Jones is up 1.4% and the S&P 500 is up 1.7%.
The increases in the major technology and chip stocks stand out, including Tesla and Nvidia with an increase of more than 3% each, Apple which jumps by 2.2%, AMD jumps by almost 5% and also Microsoft, Meta, Amazon and Google join the celebration with increases of 2%-3% . Netflix stands out above them and flies by 9%.
stock Coinbase the operator of the cryptocurrency trading application, plunges 10% after receiving a “Wells” notice from the US Securities and Exchange Commission and was downgraded by Oppenheimer, citing the Wells notice and concerns about blockchain development in the US. The Wells notice is a letter sent to companies at the end of an investigation that states that the Authority plans to file an enforcement action against them, after the SEC concluded that they should be charged with violating the securities laws.
After last night’s declines following the rise in interest rates in the US, trading on Wall Street opened with a positive trend. The Dow Jones climbed 0.6%, the S&P 500 rose 0.9% and the Nasdaq jumped 1.3%. Next week, trading on Wall Street will resume between the hours of 16:30 and 23:00 Israel time, following the activation of daylight saving time tonight in Israel.
In the bond sector, there are slight decreases in the yields of US government bonds, after they fell sharply yesterday. The 10-year bond yield drops to 3.48% and the two-year bond yield to 3.95%.
Notable increases are recorded by bank shares, including First Republic , Western Alliance , East West andPacific West .
Twitter founder Jack Dorsey’s crypto company stock, block is plunging about 17% after Hindenburg Research said it was shorting the company, arguing that its payments app “facilitates crime,” has lax controls and is “grossly inflating” its user base.
UK Macro: The Bank of Great Britain raised the interest rate in the country by 0.25% to 4.25%. The move was in line with economists’ expectations.
Yesterday it was announced that the rate of inflation in the United Kingdom in the last 12 months rose to 10.4% in February, compared to economists’ expectations of a level of 9.9% and compared to a level of 10.1% in January. In February, an increase of 1.1% was recorded compared to an expected 0.6%.
In Europe, declines of up to 0.8% are recorded in the main stock indices.
European stock markets register declines of up to 0.9%. In futures trading on US stock market indices, increases of up to 1% are recorded.
Matthew Ratcher, head of equity strategy research at Julius Baer Bank, notes after yesterday’s Fed announcement that “yesterday’s FOMC meeting sent US stocks on a rollercoaster ride. While the 25 basis point increase in interest rates was in line with expectations, and took the interest rate to a new range of 4.75%-5.0%, Fed Chairman Powell’s words that they do not expect interest rate cuts this year despite the troubles in the banking sector led to the reversal of the previous gains in the stock market. Her comments also The simultaneous statements by the American Treasury Secretary Yellen that a blanket guarantee for deposits was not discussed, did not help.”
“Real Estate and Financials were the worst performing sectors in the U.S. on Wednesday, while investors found some shelter in defensive quality sectors such as Information Technology, Consumer Protection and Healthcare. While we continue to hold our defensive bias for now, growth stocks look more attractive in the scenario of record inflation and lower bond yields. Valuations based on the forward 12-month price/earnings ratio are returning to the 10-year average level. Within growth stocks, we would stick with the big names with positive cash flow and earnings. The outlook for non-profit growth stocks is still challenging, as many of them depend on raising external capital to remain solvent.”
The Swiss National Bank raised the interest rate in the country by 0.5% to 1.5%. This despite the collapse of Credit Suisse and its merger into UBS.
The trading day in European stock markets opened with slight declines. In futures trading on US stock market indices, increases of up to 1% are recorded.
In Asia, trading closed with the Hang Seng index in Hong Kong recording a 2.1% increase, in Tokyo the Nikkei retreated by 0.2%, in Seoul the Kospi index rose by about 0.3%, and Shanghai rose by about 0.6%.
Asian stock markets are trading today in a mixed trend: the Hang Seng index in Hong Kong registers an increase of 1%, in Tokyo the Nikkei retreated by 0.2%, and in Seoul and Shanghai the trend is mixed.
Trading in futures contracts on US stock market indices is now showing slight increases. This is after trading on Wall Street closed down yesterday, with the Dow Jones index, the Nasdaq index and the S&P 500 index falling by about 1.6%. Bank shares led the declines, with First Republic shares at the bottom of the S&P index falling 15%. Nike, which was cut 5%, and Boeing, which lost 4%, also stood out. Contrary to the trend, increases were recorded in chip stocks: AMD advanced by 1.7%, and Nvidia added 1%.
Until yesterday, the American stock market was enjoying a boom in the last few days, and the S&P 500 index erased the losses from the days after the outbreak of the banking crisis in the US. The one who gave the market a boost was the American Treasury Secretary, Janet Yellen, who promised to help the financial system in the event that more banks enter to the problem.
In US government bond trading, yields continue to fall, after the Federal Reserve’s interest rate announcement yesterday. The yield on the 10-year bond is down by about 5 basis points to 3.45%, and the yield on the two-year bond is down by 10 points Basis for 3.88%.
Against the background of the recent bank collapses in the US, the Federal Reserve decided yesterday to raise interest rates in the US by 0.25%, to a level of 5%-4.75%. After the interest rate announcement, Fed Chairman Jerome Powell gave a long statement and answered journalists’ questions on a variety of topics: behind the scenes of the current decision, future interest rate increases, the collapse of US banks and its consequences for the American economy and central bank policy. Meanwhile, the Fed presented its updated forecasts for 2023. The main figure is that the bank expects only one more interest rate increase, but on the other hand, they do not estimate that the interest rate will decrease during the year. This is in contrast to market forecasts that price an interest rate cut already in the coming months.
Today (at 14:00 Israel time) the Central Bank of Great Britain is expected to announce an increase in interest rates by 0.25% to 4.25%.
In the global forex market, the dollar weakened another 0.5% against the euro and the pound and traded around $1.09 per euro and $1.233 per pound. The Japanese yen strengthens by about 0.6% and trades around 130.7 yen to the dollar.
The positive trend in crypto, this year’s hot industry, continues. Since the temporary dip of digital currencies following the collapse of Silicon Valley Bank, the bowl has been turned upside down. Bitcoin is currently trading around $27,600, and Ethereum is trading around $1,750.
In the commodity trading arena, oil contracts are down about 1%, and gold is climbing 1.5% to $1,980 per ounce.