Good morning, everybody. This is Martina’s Corner at Jores Capital on Thursday August 18th, 2022. Welcome to our program. We are giving you a short summary on market news, politics, economics and other world news and market outlook every Monday and Thursday.
Let’s see what moved the market and what’s the outlook. The S&P500 rose 9% last month which is an amazing performance as this is a year’s average and it was up 3.5% for the month of August. All this happened on mixed corporate results but on the hope that the FED may ease on increasing interest rate to keep inflation in check. Yesterday’s FED minutes yet were clear that the FED will react as long it is necessary in their eyes in order to control the price spiral going up. The consumer price index was unchanged what goes for the month but up 8.5% compared to July last year.
As a reaction the S&P500 fell 0,7% and the Dow Jones lost 0.5%, the NASDAQ was even 1.3% down. Selling was widely seen although the CNN fear and greed index is generally showing greed. That’s interesting as last month the index was on the fear side, some days even close to extreme fear.
The drought keeps being a serious problem, not only in Europe. The majority of US farmers sees the harvest affected with many selling cattle or destroying their damaged crops as the US had one of the hottest Julys in history.
On a positive note, it seems that the supply chain shortage from China is improving as the country has eased its Covid restrictions having positive effects on companies that depend on these supplies like CISCO SYSTEMS being able to report revenues of 13.1 billion USD for the quarter when 12.3 billion USD were expected by market specialists.
Today as of 9.37am CET (3.37 Eastern Time) the DAX is up 0,27%, the IBEX 0.27% up and the FTSE is 0.21% down. The S&P future is 0,26% down. This being said, the trend is slightly downwards at the moment in general, so let’s see what the day brings.
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