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Bitcoin cryptocurrency rally after Fed Chairman Powell's speech on tapering

2021-08-27T15:14:18.692Z


Dax and Dow start to recover on Friday afternoon. Fed chairman Jerome Powell has not yet decided on a point in time when the central bank should reduce its securities purchases. The cryptocurrency Bitcoin then increased significantly.


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Up and down: The Dax starts an attempt at recovery

Photo: DANIEL ROLAND / AFP

The attacks at Kabul airport only briefly impacted the stock exchanges in the USA, Europe and Asia. After the Dow Jones and Dax on Thursday, the Japanese Nikkei index closed with slight losses on Friday. A price slide did not materialize, however. On Friday afternoon, the Dax reduced its losses again and most recently climbed back above the 15,800 point mark. This means that the leading German index remains within reach of its record high. The US stock exchanges also started to recover on Friday, with the Dow Jones and Nasdaq each gaining 0.5 percent.

From the central bankers' meeting in Jackson Hole there was hardly any price movement to report in the afternoon. US Federal Reserve Chairman Jerome Powell sees the US Federal Reserve on the way to the desired exit from crisis mode. However, he avoided setting a schedule for the dismantling of the billion-dollar economic aid during his virtual speech at the Fed conference in Jackson Hole on Friday. Powell emphasized that in July he considered a start to the meltdown in securities purchases this year to be appropriate. In the meantime, the labor market has also made further progress. But this goes hand in hand with the spread of the delta variant of the corona virus. "We will carefully review the incoming data and the risks involved," said Powell.Dax and Dow reacted to Powell's remarks with slight gains, while the cryptocurrency Bitcoin gained more than $ 1,000 within a few minutes.

The Fed is currently still buying securities worth $ 120 billion a month.

Several monetary watchdogs are urging an early decision to melt down crisis aid, which would initiate the exit from the ultra-loose monetary policy.

Many experts anticipate that the reduction in purchases could begin around the turn of the year.

A decision by the monetary authorities on this is expected at the next interest rate meeting - possibly in September.

Dax, Dow and stocks at a glance

: Click here to go to the stock market

Vonovia places bonds for the purchase of Deutsche Wohnen

Vonovia shares rose significantly on Friday.

The real estate company announced that it had placed corporate bonds totaling five billion euros in connection with the planned acquisition of Deutsche Wohnen.

The papers issued at an average interest rate of just under 0.5 percent were oversubscribed four times, the Dax group informed.

Deutsche Bank continues to be under pressure

The shares of Deutsche Bank, on the other hand, lost 1.5 percent as the bottom of the Dax, after they had already slumped by a little more than two percent the day before.

Meanwhile, the papers of the fund subsidiary DWS gave in the SDax by 0.9 percent.

The day before, they had collapsed by more than 13 percent, because the media had previously reported that the DWS had been targeted by the supervisory authorities.

Morphosys and CTS Eventim in the plus

Among the second-tier stocks, CTS Eventim and Morphosys were among the price winners. The organizer and ticket dealer CTS is hoping for a major order. Together with France Billet and Orange Business Service, the company is in the final phase of negotiations on a ticketing agreement with the organizing committee for the Olympic and Paralympic Games in Paris in 2024. The shares initially rose by around five percent, then the profits melted down to 2 percent. Morphosys' papers also went up by around 2 percent. The biotech company received conditional approval in the EU for tafasitamab in combination with lenalidomide for a specific type of cancer. It is about the treatment of adults with relapsed or refractory diffuse large B-cell lymphoma.

Bitcoin is approaching the $ 50,000 mark again after Powell's speech

The digital currency Bitcoin has risen significantly after Fed Chairman Powell's speech.

Most recently, the world's largest cryptocurrency was again clearly above the mark of 48,000 US dollars and thus approached the round mark of 50,000 US dollars.

Most recently, Bitcoin was listed at $ 48,300 on the Bitstamp trading platform.

Other currencies such as Ether, the second largest internet currency after Bitcoin, also rose again.

Bitcoin has risen by almost $ 20,000 since mid-July.

However, the cryptocurrency is still a long way from its record high of just under $ 65,000, which was reached in mid-April.

Before Powell's speech, US stock exchanges hardly changed

Ahead of the Fed's speech, cautious optimism is growing again on Wall Street.

The

Dow

Jones

Industrial was

last on Friday 0.4 percent firmer at 35,338 points.

The technology-heavy Nasdaq 100 also gained slightly.

On Thursday, both indices came under temporary pressure in late trading due to the terrorist attacks in Kabul.

Corporate news contained light and shade for investors.

The fashion chain Gap was able to recover somewhat from its recent price losses thanks to surprisingly good quarterly figures and raised annual targets: In early trading, the shares rose by almost eight percent.

Gap clearly in the plus, peloton and HP under pressure

On the other hand, the shares of Peloton sagged by almost five percent.

The fitness equipment specialist reported a halving of growth for the past quarter and also unsettled investors with an unspecified accounting problem.

In the first quarter, Peloton more than doubled sales thanks to the corona boom.

The printer and computer manufacturer HP fell short of expectations due to the shortage of chips.

The better than expected profit could not compensate for that: The shares lost almost five and a half percent.

Asia: Nikkei down, China up

The Nikkei index, which comprises 225 values, was 0.3 percent lower at 27,647 points.

The broader Topix index fell 0.3 percent and stood at 1929 points.

The Shanghai stock exchange, on the other hand, was up 0.7 percent.

In Asian foreign exchange trading, the dollar lost 0.1 percent to 109.98 yen and gained 0.1 percent to 6.4847 yuan.

In relation to the Swiss currency, it was quoted 0.1 percent lower at 0.9170 francs.

At the same time, the euro remained almost unchanged at 1.1755 dollars and fell 0.1 percent to 1.0780 francs.

The pound sterling stagnated at $ 1.3697.

Oil prices hardly changed

Oil prices showed little change on Friday.

In the morning, a barrel (159 liters) of North Sea Brent cost 71.83 US dollars.

That was 42 cents less than the day before.

The price of a barrel of the American West Texas Intermediate (WTI) fell 57 cents to $ 67.79.

Oil prices were burdened by the appreciating dollar.

The crude oil traded in the US currency therefore became somewhat more expensive for many investors, which dampened their demand.

Since the beginning of the week, oil prices have nevertheless increased on balance and made up for part of the losses they had suffered since the beginning of August.

The uninterrupted spread of the Corona Delta variant is exerting pressure on oil prices.

In Asia in particular, its rapid spread is causing burdens from new restrictions on public life.

The largest economy in the China region seems to have brought its latest corona outbreak under control with rigorous containment measures.

With news agencies

Source: spiegel

All news articles on 2021-08-27

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