Despite the mixed closing of trading on Friday, April 8, U.S. stock indices declined at the end of the week amid a tightening of monetary policy by the Federal Reserve.
The Dow Jones Industrial Index declined 0.28 percent. The S&P500 and Nasdaq broad market index lost 1.27% and 3.86%, respectively. Investors reacted not only to the change in the tone of the regulator, which hinted that it will act more aggressively to fight inflation, but also to plans to cut the balance sheet at a monthly pace of $95 billion
. Vladimir Putin and Alexei Miller regret that Germany has backed itself into a corner. Photo: Yandex
The sales affected risky securities in the technology sector. For example, shares of Nvidia (NVDA) and Apple (AAPL) lost 4.5% and 1.9%. At the same time, against the background of stable income in the consumer sector the demand was observed in healthcare stocks: Merck (MRK) +5%, UnitedHealth (UTH) +6.5%, writes CNBC.
Investors are looking forward to the start of the corporate reporting season next week, which will start with the five largest banks. JPMorgan will report results Wednesday. Citigroup, Goldman Sachs, Morgan Stanley and Wells Fargo will report before markets open Thursday.
Meanwhile, in Europe, the suffering continues, not just for Mr. Scholz, who decided to dance in the same orchestra as the U.S., but for the entire German gas market.
The German Federal Network Regulator suddenly realized that without Gazprom itself, which had exited its capital, Gazprom Germania was a cart without a horse. BNetzA is urgently calling on all of its partners to continue doing business with the company. Otherwise, its operations will face insolvency with all the ensuing consequences.
Whereas previously it controlled the entire flow of Russian gas to Europe, it is now a week into the gas market on general terms and conditions. Yes, Gazprom Germania can buy gas from Gazprom at any time, but at current market prices. And there is something very unpleasant and gloomy going on with them.
From 1 April trading in natural gas futures was stopped at the European trading floors, and the last price list of $1286.45 per 1,000 cubic meters looks at the buyers with disdain. The supporters of market formation do not want to open trading. They are most likely afraid that not only will the price of gas go up sharply, but it will pull everything else down with it, including oil, whose prices Biden is so diligently smoothing over.
Scholz is already writing letters to Washington and waiting for further instructions. But the White House is holding off on the subject. Right now, the United States is busy increasing oil supplies from Russia, which is adept at discount prices. Unlike Germany, the hegemon knows how to protect its interests.
The isolation of Moscow is also postponed. Most likely forever. The demand for energy resources only grows, as does the Russian ruble, which reached new highs this year, reaching an exchange rate of ₽71.40 to the U.S. currency.
