Gasoline price will return to the beginning of 2020: Profeco

Ricardo Sheffield anticipated the return of stability in fuel prices

Last monday, Ricardo Sheffield -Head of the Federal Consumer Prosecutor’s Office (Profeco) – indicated that stability will return in prices from gasoline, in addition to estimating that the figures we had in February 2020 will also return, according to the current price of the Petroleum.

Until last week, the price of the Mexican oil mix was $ 40.60 per barrel, which would be equivalent to gasoline in the country returning to the levels it had in February of this year, where the diesel was located at 21.34 pesos per liter, the gasolina premium at 20.98 pesos and the magna at 19.86 pesos per liter.

Sheffield highlighted that the stability in fuel prices has been met and announced that the average sale of regular gasoline will remain at 19.04 pesos per liter.

Cheaper brands

Another issue that was made known was the trademarks that keep the prices plus economic made out of fuel.

In this list they stood out in the first place Total and G500. For their part, the brands that sell gasoline at higher prices are Chevron, Arco, RedCo and Exxon Car.

It was that same Monday that the president Andrés Manuel López Obrador launched a new spot where it ratified its commitment not to raise gasoline prices, this with respect to its Second Government Report.

Photo: Focus Agency

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Chevron Disconnects, Italian Oil and Gas Giant is working on an IDD project of IDR 70 trillion?

Jakarta, CNBC Indonesia – The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) said the giant oil and gas contractor from Italy, Eni SpA, is one of the strong candidates for the development of the Indonesia Deep Water Development (IDD) project, aka Ultra Deep Sea in East Kalimantan.

As is known, the Ministry of Energy and Mineral Resources (ESDM) has confirmed that PT Chevron Pacific Indonesia (CPI) will withdraw from developing the project.

“Eni himself is already around there (Eni manages the East Sepinggan Block in East Kalimantan) which has production facilities. So the recap or outside of the agreement between the two parties will later arrange for Eni to have a good positioning to develop IDD. He has facilities and can be integrated and if possible, the investment can be suppressed, “said Head of SKK Migas Dwi Soetjipto at the ESDM Ministry office Friday (07/08/2020).

Dwi said, by reducing investment, the economy would be better. Meanwhile, the price of gas itself will depend on the market.

However, Dwi said, SKK Migas and the government would see which oil and gas contractors were right to enter, had experience, and so on.

“So we will be concerned that this project can run, so that production can reach one million barrels of capacity. So that is a large company that has experience in the criteria that have entered,” Dwi said.

SKK Migas said that the IDD project contract ended in 2027-2028 so that it needed to be extended. Because if not, then the economy will not be obtained.

Dwi said the government would support this contract extension if there were already serious contractors working on it.

“How can we enter to implement the project if it is not clear, even though it will ask for approval from the government. But God willing, the government will support the extension if the contractor is serious,” said the former Pertamina President Director.

Dwi also hopes that the process of releasing participant interest (PI) can be completed this year. Because, if it is not carried out immediately, the project will not run quickly.

“Oh, this is actually the process, the time line in the real one depends on the deal. I’m sure it should be this year (IDD) because if not, we won’t take this trip,” said Dwi.

Previously, the Ministry of Energy and Mineral Resources confirmed that it would withdraw from the IDD Kaltim project worth US $ 5 billion or Rp 70 trillion (exchange rate of Rp. 14,000 / US $).

“The IDD is clear. Chevron is in a package with Rokan. I think that’s the answer. If he is already with Rokan, this means he is with Rokan,” said Ego Syahrial, Acting Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, Wednesday (05/08/08) / 2020).

As is known, the Rokan Giant Oil Block will be taken over by Pertamina in August 2021 from the CPI. This means that with the termination of the contract in the Rokan Block, Chevron will also withdraw from the IDD project.

Ego said Chevron offered this project to a giant oil and gas contractor from Italy, Eni SpA

“Yes, they don’t know the point they are offering themselves to each other. All I know is that Chevron offered to wait. Loh Chevron offered to offer himself,” he said.

If Chevron leaves Indonesia, it means that there are no more projects being carried out in Indonesia. Responding to this, Ego said, it is possible that Chevron will invest in the country.

[Gambas:Video CNBC]

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Prospect of pandemic easing supports US stock markets

Frankfurt The prospect of loosening corona restrictions in some U.S. states supported prices on Wall Street on Friday. However, due to the overall gloomy economic forecasts, there was no real mood to buy.

The Dow Jones gained 1.1 percent to 23,775 points. The technology-heavy Nasdaq advanced 1.7 percent to 8635 points and the broad S&P 500 increased 1.4 percent to 2837 points. On a weekly basis, the Dow gained about 1.1 percent, the S&P 1.4 percent and the Nasdaq just under 1.7 percent.

Georgia is the first federal state to lift the lockdown, although President Donald Trump did not approve the timing. Governors from Texas, Tennessee, Ohio and Montana, for example, also announced plans to allow business to resume quickly for some jobs.

“We have passed the peak and slowly but surely all countries in which there have been no major cases will gradually reopen,” said Thomas Hayes, managing member of the asset manager Great Hill Capital. “The market sees this as a signal that demand will come back.”

But the prospects for the global economy remain bleak. The US industry is experiencing a massive drop in orders as a result of the corona crisis. Orders for consumer goods such as airplanes and machines dropped by 14.4 percent in March. Economists surveyed by Reuters had expected a drop of 11.9 percent.

In Europe, investors were disappointed by the EU’s contingency plans to combat the aftermath of the pandemic. The Dax lost 1.7 percent to 10,336 points, the EuroStoxx fell by around one and a half percent.

Prices went up and down on the oil market. After a loss of around five percent, a barrel (159 liters) cost $ 16.86, around two percent more than on Thursday. North Sea oil of the variety Brent was quoted at $ 21.60. The price for the main US brand WTI then stabilized around $ 17. Oil stocks like ExxonMobil and Chevron reacted with further moderate profits.

Analysts are not giving the all-clear after the historic price collapse at the start of the week. “The extracted oil simply has no place where it can be stored,” said Bjornar Tonhaugen, who is responsible for the oil market at the Rystad Energy analysis company.

Because of the pandemic, oil demand has plummeted 30 percent. At the same time, the camps are filled to bursting, particularly in the USA.

The unprecedented drop in the price of oil at the beginning of the week is the subject of investigations by the US derivatives regulator (CFTC). “In such a situation, we are looking into all sorts of explanations,” CFTC Commissioner Dan Berkovitz told Reuters on Friday. Because of the extreme price fluctuations, you will take a closer look this time. In the United States, such an investigation can take years.

Focus on individual values

One of the biggest losers in the US stock market was stocks of Boeing, which gave around 6.4 percent. According to a newspaper report, the aircraft manufacturer plans to cut the production of its Dreamliner model 787 in half.

In addition, the planned purchase of the commercial airline division of the Brazilian airline threatens Embraer to burst in view of the rapidly falling market value of both groups. There was a blockade on the $ 4.2 billion deal, and fate is uncertain unless a breakthrough is found quickly, people familiar with the talks said.

Papers from Intel tended to go down in the course, then close 0.4 percent up. The chipmaker had forecast earnings below expectations for the second quarter.

Given the general situation, it is not surprising that the group has also cashed in its annual forecast, the analysts from Cowen and Company judged. However, it is surprising that the structural drivers for growth in the first quarter apparently no longer exist in the second quarter.

The shares of Facebook at the same time increased by 2.7 percent, while the papers from zoom Video communications, which had risen to a record high of $ 181.50 at the start of trading, plummeted 6.1 percent. In view of the rapid growth of video chats in the corona crisis, Facebook does not want to leave this terrain to the rising zoom and counters with its own offer.

The fuss about the Ebola drug Remdesivir from Gilead Science, which is currently being tested in the treatment of lung disease Covid-19, did not go on too long that day. According to the manufacturer, the fact that the administration of the drug in China did not lead to a noticeable improvement in patients, as was reported on Thursday, is not meaningful

The study was terminated prematurely due to low participation and therefore has no statistical value, it said. Gilead’s stock, which had dropped a little more than 4 percent the day before, eventually recovered by 2.4 percent after further losses initially.

The share certificate from Beyond Meatwhich rose for the seventh day in a row. Cooperation with has been particularly strong since Tuesday, after the meat substitute manufacturer had announced Starbucks want to enter the Chinese market. Overall, the paper has risen by almost 40 percent since this announcement, nine percent of which this Friday alone.

After a weaker start, trend-setting ten-year government bonds on the US bond market finally rose by 3/32 points to 108 20/32 points and returned 0.590 percent. The euro was trading around the $ 1.08 mark in US trade and was priced at $ 1.0815 at the close on Wall Street. The European Central Bank set the reference price at $ 1.0800 (Thursday: 1.0772). The dollar thus cost 0.9259 (0.9283) euros.

More: Read here how the German stock market ended the week.

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US stock exchanges hardly change – Gilead Sciences weighed down

Dusseldorf The US stock exchanges closed little changed on Thursday. Relief from US economic data initially supported Wall Street. A media report on disappointing test results with the remdesivir agent for the possible treatment of Covid-19 then depressed the mood in late trade.

The standard value index Dow Jones closed 0.2 percent higher at 23,515 points. The technology-heavy Nasdaq stagnated at 8494 points. The broad S&P 500 lost 0.1 percent to 2797 points.

Last week, 4.4 million Americans applied for US unemployment benefits. In the previous week, however, the number of initial applications had been around a million higher.

The markets rated this as positive, even if a recession could not be averted, said Steven Blitz, chief economist for the USA at the research house TS Lombard. Investors appear to be betting that the economy will recover quickly if the restrictions to curb the coronavirus pandemic are relaxed.

However, Peter Cardillo, chief economist at Spartan, advised against excessive expectations. “The worst of the pandemic is probably behind us,” said Peter Cardillo, chief economist at Spartan. “But with the oil price at the current level, there is a threat of a wave of layoffs in the US energy sector, which will nullify the effects of a restarting economy.”

The US crude oil grade WTI rose 23 percent to $ 16.95 a barrel (159 liters) after its price fell below zero for the first time at the beginning of the week. At the beginning of March – before the outbreak of the virus crisis in the USA and before the price war between Saudi Arabia and Russia – WTI had still cost twice as much.

This drop in price is a problem especially for shale oil producers. According to experts, because of the complex fracking process, they only work profitably at a price of around $ 50.

Focus on individual values

Nevertheless, investors also accessed these values. The shares of companies like marathon, Occidental or Apache won up to eleven percent. The papers of the oil multinationals Exxon and Chevron each advanced about three percent. The paper from the company active in health care was also among the top values UnitedHealth with plus 3.0 percent.

The titles of Las Vegas Sands, which rose by around twelve percent. The casino operator expects the important Asian business to recover quickly as soon as the travel restrictions there are lifted. Competitors’ shares Wynn and MGM won up to 8.6 percent.

Eli Lilly shares jumped to a record high at $ 162.56. With a smaller plus of 2.1 percent to $ 159.93, they finally went out of the day. Investors recognized the 40 percent year-over-year increase in sales of the blockbuster drug Trulicity for diabetes to a quarterly record of $ 1.2 billion.

By contrast, the shares of Target, even though the retailer’s online sales almost quadrupled in the past quarter, making up for lost business from closed stores. However, the company warned of shrinking profit margins due to wage increases for employees. Target shares lost 2.8 percent.

The titles of Crocs even slipped by more than 16 percent. Known for its rubber slippers, the shoe manufacturer fell short of market expectations with quarterly sales of $ 281.2 million and earnings of $ 0.16 per share. The company also warned of further losses in the current quarter due to virus restrictions.

Among the losers Gilead Sciences with a discount of 4.3 percent. The company denied a media report of disappointing test results with the remdesivir agent for the possible treatment of Covid-19.

The study in China was terminated prematurely due to a lack of participants and was therefore not statistically meaningful, the US pharmaceutical company explained. The Financial Times has presented the process inappropriately, the World Health Organization accidentally posted a draft clinical trial on the Internet. The UN organization confirmed the breakdown and said the document had been removed after the error became known.

Quarterly reports were also in view.

Air Products & Chemicals Withdrawn the 2019/20 financial year forecast for earnings per share from the figures. The industrial gases manufacturer’s paper then gave way by 1.5 percent.

The chip manufacturer’s quarterly report, which was announced after the market closed, was also eagerly awaited Intel, whose shares in the Dow lost 1.8 percent. Intel ultimately disappointed with its earnings outlook for the second quarter, whereupon the papers gave in even more after-hours.

The share certificates of Snap down. The makers of the photo app Snapchat want to get $ 750 million (695 million euros) of fresh money on the market in the face of the corona crisis via convertible bonds.

In the US bond market, trend-setting ten-year government bonds rose 5/32 points to 108 16/32 points and returned 0.603 percent. The euro exchange rate went up and down in US trade and ultimately slid below the $ 1.08 mark again. At the close on Wall Street, the common currency was $ 1.0771. The European Central Bank set the reference price at $ 1.0772 (Wednesday: 1.0867). The dollar thus cost 0.9283 (0.9202) euros.

More: Read here what moves the German stock market on Thursday.

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Wall Street on the upswing after oil price collapse

Dusseldorf After the turmoil of the past few days, Wall Street is breathing a little more. The prospect of further stimulus measures on Wednesday lured investors back into the US stock market. The standard value index Dow Jones closed two percent higher at 23,475 points. The technology-heavy Nasdaq advanced 2.8 percent to 8495 points. The broad S&P 500 gained 2.3 percent to 2799 points.

Impaired by the historic oil price chaos, the Dow Jones ended Tuesday trading 2.7 percent lower at 23,018 points. The technology-heavy Nasdaq dropped 3.5 percent to 8,263 points. The broad S&P 500 lost 3.1 percent to 2736 points.

“Stock markets seem to think that stimulus from governments and central banks will be enough to neutralize the economic damage caused by the coronavirus pandemic,” said Rabobank economist Teeuwe Mevissen. “As long as this mood persists, economic data don’t seem to matter.”

The Federal Reserve (Fed) pumps trillions of dollars into the financial markets through the purchase of securities. In parallel, the US Senate launched another $ 500 billion stimulus package. That is certainly not the last, said analyst Joshua Mahony from the brokerage IG. “US President Donald Trump has demonstrated his willingness to increase debt in the name of economic growth.”

With the overall market, oil stocks also went on a recovery course. They had come under pressure in the past few days because of the price hype of the US variety WTI. The shares of Exxon and Chevron grew up to 3.4 percent.

Look at the individual values

One of the biggest winners on Wall Street Biontech with a course increase of almost 27 percent. The Mainz biotech company, which works together with the US pharmaceutical company Pfizer researching a vaccine against the lung disease Covid-19 has received approval for a clinical study in Germany.

In the USA, too, the active ingredient will soon be clinically tested after approval. While in the Dow Pfizer shares In line with the market, increasing by 1.8 percent, the Biontech stocks listed on the Nasdaq gained almost 27 percent.

The titles of Chipotle, which rose by twelve percent. The strong online business cushioned the slump in the stationary business of the fast food chain, the analysts of the investment bank BMO wrote. The company, which also has branches in Germany, made a surprisingly high quarterly profit of $ 0.18 per share.

The papers from Netflix On the other hand, they fell by 2.8 percent, although the online video store was able to win twice as many new customers as expected due to the coronavirus restrictions. However, the company warned that the boom would slow down as soon as the restrictions on public life were relaxed again.

But that doesn’t change the positive long-term business prospects, wrote the analysts of the asset manager Cowen. They also considered Q2 user numbers to be too conservative because of the still widespread exit restrictions.

Quarterly numbers, among other things Texas Instruments, AT&T and Biogen in front. The chipmaker had lost less revenue and profit in the first quarter than feared, which gave the shares an increase of 4.8 percent. The telecom company’s papers, on the other hand, lost 1.3 percent after a drop in sales and a withdrawn outlook.

Biogen fell by 9.4 percent to the end of the Nasdaq 100. The biotech company was not only in the spotlight with its quarterly figures, but also with its active ingredient aducanumab against Alzheimer’s.

The application for approval of this product is to be submitted later than previously announced. That raised more questions than answers, complained about RBC analyst Brian Abrahams and immediately lowered the price target for the share.

There was also news too United Airlines and Facebook. The shares of the battered airline dropped 7.2 percent because United wants to raise fresh money through a billion dollar capital increase.

Facebook on the other hand, jumped 6.7 percent after strong losses from the previous day. The network giant wants to penetrate further into India and buys almost ten percent of the Jio Platforms for $ 5.7 billion (€ 5.25 billion). This is the subsidiary of a leading mobile operator.

In the US bond market, ten-year government bonds lost 17/32 points to 108 10/32 points and returned 0.624 percent. The euro was trading at $ 1.0820 at the close on Wall Street. The European Central Bank set the reference price at $ 1.0867 (Tuesday: 1.0837). The dollar thus cost 0.9202 (0.9228) euros

With agency material.

More: Read here what happened on the German stock market this Tuesday.

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Dow Jones, Nasdaq, S&P 500: Oil price chaos leads to further losses on the US stock exchanges

Oil prices have not yet recovered after the historic crash. This puts pressure on the three most important US indices, they close in the loss zone. .

Oil price crash pulls Wall Street down

Wall Street

The corona virus and its further effects on the economy are still the focus of the US stock exchange.

(Photo: AP)

Dusseldorf At the beginning of the new trading week, Wall Street suffered significant losses. The Dow Jones slipped almost two percent shortly after the start of trading to 23,873 points.

The broadly chamfered S&P 500 also fell by around two percent to 2,830 points, the Nasdaq composite index slipped to 8,559 points, making it a good one percent in the loss zone. About an hour later, the prices of the indices recovered only slightly.

Last week, Donald Trump’s exit strategy from the corona crisis and the prospect of a drug against the virus had given hope to US investors. Over the course of the week, the Dow had risen by 2.2 percent, the S&P by three and the Nasdaq 100 index by 6.1 percent.

The slide on Wall Street is due in particular to falling oil prices. Monday is the Prices for US crude oil plummeted. A barrel of West Texas Intermediate (WT) fell up to 40 percent to around $ 11 – the lowest in over 21 years. This continues the drop in oil prices. A decline of almost 85 percent has been recorded since the beginning of the year.

The fall in prices can be justified in particular by the high oil stocks in the USA. In addition, there is the situation with futures contracts for crude oil deliveries. The June contract for the US variety WTI slipped 6.5 percent to $ 27.52 and the May future, which expired on Tuesday, even fell by almost a third to $ 12.41. WTI was last that cheap 21 years ago.

In the wake of another drop in the price of crude oil, the stocks of the oil companies are also coming under pressure. For example, the papers of companies like Apache, Marathon, Hess and Schlumberger dropped by up to 8.3 percent at times, but were able to recover. The titles of the oil multinationals ExxonMobil and Chevron lost around three percent.

In the Medical technology company Co-Diagnostics those responsible are happy about the consistently high demand for corona virus tests. This creates a good mood among investors. The company’s paper rose 15.3 percent to $ 15.10 after gaining 11 percent in pre-exchange US business. The price has roughly doubled since the beginning of the month.

With agency material.

More: Read here how the German stock market developed on Monday.

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Dow Jones closes in the red – Netflix shares rise seven percent

new York The US standard values ​​suffered losses at the start of the new trading week. The upcoming balance sheet season casts its shadows ahead, experts said. Many investors expected weaker results from the corona virus outbreak and the resulting paralysis of business life. In addition, signs of the long-term effects of the pandemic clouded the mood on the floor.

While the Dow and the S&P 500 gave way, the Nasdaq technology exchange put on the upswing of the online retailer Amazon to. Oil prices showed no clear trend after the leading crude oil producers agreed on a record cut in production.

The Dow Jones index of standard values ​​closed 1.4 percent weaker at 23,390 points. The broader S&P 500 lost one percent to 2,761 points. In contrast, the index of the technology exchange Nasdaq advanced by 0.5 percent to 8192 jobs.

On Tuesday, the US banks give JP Morgan Chase and Wells Fargo the starting signal for the balance sheet season. Analysts expect a weak outlook for the rest of the year to be reflected in the number of financial institutions.

This also applies to other industries, said Mike Loewengart, investment strategist E-Trade Financial Corp. The numbers also offer a lot of opportunity for coffee grounds reading – for example on the question of whether the downturn has already been fully factored in or whether it will come even more violently.

Focus on individual values

On the oil market, prices reacted to the cut in production with occasionally significant fluctuations, which US industry stocks like ExxonMobil and Chevron followed. In the end, the latter only increased moderately by 0.7 percent, whereas the former, at a discount of 0.9 percent, did not become a profiteer. Expert Neil Mehta from Goldman Sachs Expressed his preference for chevron in a study on Monday.

The values ​​from the travel and leisure industry are not revving up sustainably. After last week’s recovery, things went downhill again for the airlines, especially for United Airlines by more than eight percent. Hotel and cruise providers and travel portal operators followed the example: Marriott, Expedia and Carnival lost up to 7.4 percent.

The bottom of the Dow were shares of Caterpillar, for which the experts of the Bank of America became a stumbling block on her recovery path. They slumped by 8.7 percent after expert Ross Gilardi expressed pessimistic comments about the construction machine manufacturer’s prospects in key customer segments.

On the technology-heavy Nasdaq exchange, the mood of price gains for shares such as Netflix and Amazon brightened. The two stocks, which have recently been traded as beneficiaries of the corona crisis, continued their recent rally with increases of seven and 6.2 percent respectively. Both are gradually starting to run up to their previous highs.

While the papers stood by the carmaker ford and General Motors suffered from virus worries on Wall Street with taxes of 3.9 and 4.4 percent respectively Tesla-Share still a rosy picture. They jumped to the top in the Nasdaq 100 with a price jump of 13.6 percent. For the titles of the electric car maker, this was the sixth day in a row to win.

Among the winners were also those at the Nasdaq Ebay-Shares with a course increase of almost three percent. The online marketplace has found a new boss – Jamie Iannone comes from the US shopping giant Walmart. Its shares rose by almost three percent at the top of the Dow.

On the oil markets, the North Sea Brent rose by 1.3 percent to $ 31.87 a barrel. By contrast, US crude was trading 1.3 percent lower at $ 22.47.

More: The US institutes are threatened with the “triple whammy”: the idle economy, provisions for loan defaults and lower key interest rates are depressing profits.

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US exchanges give way despite oil deal

US exchanges

After the Easter weekend, the stock exchanges start trading and react to the Opec plus oil deal.

(Photo: AP)

new York Wall Street started the new trading week at a loss. The upcoming balance sheet season casts its shadows ahead, experts said. Many investors expected weaker results as a result of the corona crisis and the resulting paralysis of business life.

In addition, signs of the long-term effects of the pandemic clouded the mood on the floor. Oil prices, on the other hand, rose after the leading producers agreed on the largest cut in production ever.

The Dow Jones index of standard values ​​was 2.3 percent weaker in New York midday trading at 23,181 points. The broader S&P 500 lost two percent to 2,733 points. The Nasdaq technology exchange index fell 0.9 percent to 8082 jobs. The Frankfurt Stock Exchange was closed on Easter Monday.

On Tuesday, the US banks give JP Morgan Chase and Wells Fargo the starting signal for the balance sheet season. Analysts expect a weak outlook for the rest of the year to be reflected in the number of financial institutions.

This also applies to other industries, said Mike Loewengart, investment strategist E-Trade Financial Corp. The numbers also offer a lot of opportunity for coffee grounds reading – for example on the question of whether the downturn has already been fully factored in or whether it will come even more violently.

The organizers of cruises already felt the consequences of the coronavirus crisis on Monday at the stock exchange. The shares of Carnival and Royal Caribbean gave in eight and 15 percent respectively.

The US Centers for Disease Control extended their ban on all cruise ships. There have been numerous coronavirus cases on some ships in the past.

ford anticipates an adjusted pre-tax loss of approximately $ 600 million in the first quarter due to the pandemic. A year earlier, the automaker made a profit of $ 2.4 billion. The share certificates fell by 5.6 percent.

On the oil markets, the North Sea Brent rose by 1.7 percent to $ 32.01 a barrel. US crude was trading 0.9 percent higher at $ 22.98.

More: The US institutes are threatened with the “triple whammy”: the idle economy, provisions for loan defaults and lower key interest rates are depressing profits.

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Dow Jones, Nasdaq, S & P500: Fed Aid Drives US Stock Exchanges

new York New billion dollar economic aid from the US Federal Reserve supported prices on Wall Street ahead of the long Easter weekend. The standard value index Dow Jones closed on Thursday 1.2 percent higher at 23,719 points. The technology-heavy Nasdaq advanced 0.8 percent to 8153 points. The broad S&P 500 gained 1.4 percent to 2,789 points. For the S&P, it was the largest weekly percentage gain since 1974.

Faced with a bleak outlook for the US job market, the central bank is once again jumping into the troubled economy in the coronavirus crisis and launching a program worth $ 2.3 trillion for companies, states and counties.

Fed chief Jerome Powell assured that the central bank could keep the economy afloat as long as necessary: ​​There are no time limits for this. “The Federal Reserve and the United States government are ready to make extreme efforts to support the economy, and this has far exceeded my expectations,” said Dev Kantesaria, founder and portfolio manager of Valley Forge Capital Management hedge fund.

The money injections also outshone the ongoing wave of unemployment claims. Last week alone, 6.6 million citizens applied for government support.

The central bank’s programs include the purchase of short-term municipal bonds by the Fed. She also runs a loan program for small and medium-sized companies. In addition, several existing loan programs are being expanded.

Investors comforted themselves that the Fed was backing them, said Dan Russo, market strategist at Chaikin Analytics. Despite the recent recovery, the Dow is still far from its record high of around 29,569 points in mid-February.

No stabilization of the US stock exchanges: “Down risks greater than up opportunities”

Investors in Europe were also encouraged by the hope of containing the coronavirus pandemic. Of the Dax gained 2.2 percent to 10,565 points, the EuroStoxx50 gained around one and a half percent.

The mood on the stock exchanges is still very changeable, “but the signs that the virus curve is continuing to flatten in the worst affected countries are very positive,” said Stephen Innes, market strategist at AxiCorp.

The focus was also on the meeting of the oil producing countries grouped together in Opec + to plan a drastic reduction in the production volume for the coming months. The move is inevitable because both the corona crisis and a price war between Saudi Arabia and Russia have been weighing on the oil price for weeks.

Focus on individual values

This Thursday, oil prices lost initial profits again and fell slightly, so did the stocks of the oil companies Chevron and ExxonMobil lost almost two percent each. The current cuts in funding do not seem to go far enough for investors, said Börsianer.

Walt stood out in the US single values Disney with an increase of around 3.4 percent. Entertainment company Disney +’s new streaming service broke the 50 million subscriber mark worldwide. The growth is impressive, the analysts said JP Morgan.

Bank stocks were also in demand. JPMorgan’s papers at the top of the Dow skyrocketed by around nine percent. Outside of the US leading index, the shares of Citigroup by a good seven percent and that of Wells Fargo by 9.6 percent.

On the foreign exchange market, the euro benefited from the general weakness of the dollar as a result of the Fed’s new loan programs and was recently quoted at $ 1.0930. The European Central Bank set the reference rate at $ 1.0867 (Wednesday: 1.0871). The dollar thus cost 0.9202 (0.9199) euros. Trend-setting ten-year US bonds rose by 16/32 points to 107 12/32 points in a shortened trade and returned 0.72 percent.

More: Bank of England now has to finance British government debt

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