New York / Düsseldorf The optimistic mood on Wall Street only lasted a few hours on Friday. US equity markets did not join the recovery trend on the European and Asian stock exchanges and ended one of the darkest weeks in their history.
The prices turned negative because many investors became nervous again due to tightened exit regulations in cities like New York and London and avoided the risk before the weekend.
The US leading index Dow Jones closed more than 900 points or 4.6 percent lower to 19,174 points. The technology-heavy Nasdaq Composite dropped 3.8 percent to 6880 points. The broad S&P 500 lost 4.4 percent to 2305 points. In a weekly comparison, the Dow slumped by more than 17 percent, the Nasdaq by more than twelve percent and the S&P almost 15 percent.
New York governor Andrew Cuomo imposed new exit restrictions so that more state residents can stay at home and the coronavirus can spread less quickly. This also reduces the options for daily shopping.
“I don’t think we’re over the top,” said portfolio manager Lamar Villere of Villere Balanced Fund. “Most people have not yet been tested for the corona virus, so the extent of the spread is unknown or is not understood. If this number increases, there is a possibility of increasing caution among investors. ”
A number of additional monetary policy measures by the US central bank had already supported the US stock markets on Thursday. Investors are now expecting further monetary policy measures in the next few days if the Senate approves a $ 1 trillion package that includes direct financial aid to Americans.
The volatility in the financial markets in all regions and asset classes is at a record level, the analysts of the US stock market operator S&P Global found. Historically, the only comparison for market sellouts was the 2008 financial crash.
On Friday, the trading volume on the US stock exchanges was particularly high due to the so-called witch’s sabbath. Options and futures fall on that day, so investors try to move prices in the direction that suits them best.
Once again, investors switched to the US bond market at the end of the week. Yields on ten-year bonds fell to their lowest this week. The US dollar also fell. On the oil market, prices for the North Sea Brent and US light oil came under pressure again after hopes of an intervention by US President Donald Trump to settle the price war between Saudi Arabia and Russia were initially not fulfilled. The US companies in the shale oil industry in particular are suffering from the discount battle on the oil market.
Look at the individual values
The shares of airlines that have been hardest hit in the past few days are starting to recover on Friday. American Airlines rose by almost one percent and United Airlines by a good 15 percent.
MGM Resorts’ share certificates increased by around 23 percent, leading the list of airlines, hotels and cruise lines.
For the shares of General Electric it went up 0.6 percent. The US competition authority approved the sale of the conglomerate’s biopharmaceutical business to its competitors Danaher. Its papers lost 0.3 percent.
Genmark’s share price jumped rapidly by around 30 percent. The US emergency approval of a coronavirus test triggered a run on the titles.
The prospect of using a malaria agent to combat the coronavirus gave the manufacturer Mylan an increase of 2.6 percent. According to the pharmaceutical company, the drug is not yet approved for use against the pathogen Covid-19, the World Health Organization sees the drug as a candidate for this. The production of the agent is ramped up.
General Electric shares rose 0.6 percent. The US competition authority approved the sale of the conglomerate’s biopharmaceutical business to its competitor Danaher. Its papers lost 0.3 percent.
At Uber, which rose by 4.1 percent, the shares were upgraded to “Overweight” Wells Fargo positively noticeable. The company also assured that it had a solid financial cushion.
The Boeing–Stock initially gained over three percent after being in free fall for four days following a complete collapse in the aerospace sector that had been stalled by the coronavirus pandemic. At the close, the securities closed 2.76 percent in the wake of the weaker overall market.
The US telecommunications group broke the suspension of the planned share buyback program AT&T a minus of almost nine percent. The company said the economic consequences of the pandemic for the company are still uncertain.
Thanks to ongoing takeover speculation, Sysco’s securities initially shot up by around 12 percent, but lost all of their profits and closed just under five percent lower. The head of the German retail group metro, Olaf Koch, was open to a takeover by the US wholesaler according to “Manager Magazin” and confirmed for the first time discussions between the two companies.
The euro fell below the $ 1.07 level in US trade after having traded above it in European business. The most recent currency was $ 1.0665. The European Central Bank (ECB) had set the reference rate at $ 1.0707 (Thursday: 1.0801). The dollar had thus cost 0.9340 (0.9258) euros. Trend-setting ten-year US government bonds rose 2 21/32 points to 106 1/32 points. They paid 0.87 percent.
With agency material
More: Comparison of stock market crises