DAX Stock News Today – Wall Street stocks on track for worst losing streak since pandemic began

This article was originally published on this site

DAX Stock News Today – Wall Street stocks on track for worst losing streak since pandemic began

US equities dipped on Monday afternoon, on track to notch a six-day run of losses for the S&P 500 and mark the benchmark’s longest losing streak since the onset of the coronavirus pandemic.

The S&P 500 gave up earlier gains to trade 0.2 per cent lower for the day. The technology-heavy Nasdaq Composite moved 0.4 per cent lower.

The S&P had its worst week since June last week, although it remains close to the all-time high reached earlier this month, as investors fretted about the US Federal Reserve cutting its $120bn a month of bond purchases designed to boost lending and spending during the pandemic.

But financial markets also have other concerns. Investors have moved to guard portfolios against a possible drop in asset prices in recent weeks, with record highs in the stock market being met with nervousness due to a host of potential destabilising factors.

“It is notable that the general sentiment has turned quite nervous, with a wall of worry including: China slowing, Delta [variant] headwind, US consumer weakening, ‘peak everything’, liquidity rolling over and potential adverse tapering impact,” noted analysts at JPMorgan on Monday.

In contrast to the general tone of the market, energy stocks lurched 2.9 per cent higher, buoyed by higher oil prices.

Brent crude jumped 0.8 per cent to $73.51 a barrel, the global benchmark’s strongest price since early August, following a bullish forecast by Opec in its monthly report.

Oil demand in 2022 was now projected to reach 100.8m barrels a day, exceeding pre-pandemic levels, said the cartel, adding that “the recovery in various fuels is expected to be stronger than anticipated and further supported by a steady economic outlook in all regions”.

Alongside energy, financials was among the top-performing sectors in the S&P 500 index on Monday, up by 0.7 per cent.

The same pattern was repeated in Europe, where energy and financial stocks led the continent’s bourses higher. This helped the region-wide Stoxx Europe 600 benchmark close up 0.3 per cent, ending five sessions of back-to-back falls.

London’s FTSE 100, which has a heavy leaning towards oil and gas groups, advanced 0.6 per cent, as did Frankfurt’s Xetra Dax.

The yield on the 10-year US Treasury note dipped 0.02 percentage points to 1.32 per cent, after climbing higher on Friday as traders sold debt in response to US factory gate prices climbing faster than economists had forecast.

The dollar index, which measures the currency against six leading peers, gained 0.1 per cent, while the euro fell 0.1 per cent against the greenback to $1.1803.

In Asia, Hong Kong’s Hang Seng index dropped 1.5 per cent after the Chinese government intensified a crackdown on the nation’s tech sector with a move to break up Alipay, a smartphone app with more than 1bn users owned by Jack Ma’s Ant Group. The CSI 300 index of mainland Chinese shares lost 0.4 per cent.

Unhedged — Markets, finance and strong opinion

Robert Armstrong dissects the most important market trends and discusses how Wall Street’s best minds respond to them. Sign up here to get the newsletter sent straight to your inbox every weekday

DAX Stock News Today – Wall Street stocks on track for worst losing streak since pandemic began