indexes in this article
Noon market overview, compiled by Dow Jones Newswires:
+++++ HOLIDAY NOTIFICATION +++++
MONDAY: Australia’s stock markets remain closed due to the Queen’s birthday (regional banking holiday).
+++++ SHARE AND BOND MARKETS (1:10 pm) +++++
INDEX reading + -% + -% YTD
E-Mini Future S&P 500 4,012.25 -0.1% -15.5%
E-Mini Future Nasdaq-100 12 290.75 + 0.1% -24.7%
Euro Stoxx 50 3 657.75 -1.8% -14.9%
Stoxx 50 3 545.64 -1.5% -7.1%
DAX 13,995.95 -1.4% -11.9%
FTSE 7 387.01 -1.2% + 1.2%
CAC 6,252.73 -1.7% -12.6%
Nikkei-225 27 824.29 -1.5% -3.4%
EUREX level +/- points
The future of the Bund 148.15% +0.35
Bond market last +/- absolute +/- YTD
Productivity DE 10 years 1.40 -0.02 +1.58
US profitability 10 years 3.03 -0.01 +1.52
+++++ GOODS MARKETS +++++
ROHL last VT-Settl. +/-% +/- USD% YTD
WTI / Nymex 122.37 121.51 + 0.7% 0.86 + 68.1%
Brent / ICE 123.99 123.07 + 0.7% 0.92 + 64.4%
METALS last day before +/-% +/- USD% YTD
Gold (spot) 1,842.86 1,847.91 -0.3% -5.06 + 0.7%
Silver (Spot) 21.55 21.69 -0.6% -0.14 -7.5%
Platinum (Spot) 974.81 975.34 -0.1% -0.53 + 0.4%
+++++ SEE USA Stocks +++++
Wall Street remains trapped between inflation and rate hikes. The interest rate hikes announced a day earlier by the ECB had a negative impact. But now, with US consumer prices, attention is being paid to developments in the country. Investors waited for a stimulus from the inflation data. If inflation continued to rise, pressure on the Fed to respond appropriately would also increase. They argue that the belief that inflation has peaked is not yet very clear on the market. An increase in inflation above market expectations may push the overall S&P 500 index below the 4,000 points mark.
Meta platforms are 0.4 percent. Facebook is clearly reviewing its commitment to pay for messages on its own platform. Those familiar with the matter report that publishers can lose tens of millions of dollars in lost revenue.
Docusigna’s titles fell by 26.6 percent. The developer of the e-signature software said growth slowed in the first quarter and that hiring plans would also be scaled back. Net profit for the first quarter was below expectations.
+++++ ECONOMIC PERSPECTIVES ++++++
14:30 consumer prices May
FORECAST: + 0.7% y / y / + 8.3% y / y
previously: + 0.3% y / y / + 8.3% y / y
base price of consumer prices
FORECAST: + 0.5% y / y / + 5.9% y / y
previously: + 0.6% y / y / + 6.2% y / y
14:30 real income May
16:00 Uni Michigan Consumer Sentiment Index (first survey) June
+++++ FINANCIAL MARKETS EUROPE +++++
Exchanges are still under a lot of sell-off pressure. “The situation continued to deteriorate after the European Central Bank (ECB) meeting,” said one market participant. Along with the higher inflation forecasts, interest rate expectations have been revised upwards. In addition, yields increased in the periphery Eurozone especially strong in the face of the imminent termination of the ECB’s purchasing programs, so that memories euro crisis will be called. The banking sector, which is heavily invested in government bonds, lost 2.8 percent. The focus is now on US consumer price developments in May, which will be released this afternoon. At the same time, another partial blockade in Shanghai is a burden. Interest rate sensitive people are under a lot of pressure real estate stocks. Industry earnings are likely constrained upward. A Missouri court ruled in favor of Bayer (-2%) in the Roundup dispute. Credit Suisse shares are still under pressure (-3.4%) as State Street has made it clear that it has no interest in taking over a major Swiss bank.
+++++ CURRENCIES +++++
FOREX last +/-% Thu 10:00 17:31% YTD
EUR / USD 1.0590 -0.3% 1.0698 1.0738 -6.9%
EUR / JPY 141.64 -0.8% 142.86 143.78 + 8.2%
EUR / CHF 1.0399 -0.1% 1.0481 1.0467 + 0.2%
EUR / GBP 0.8516 + 0.2% 0.8563 0.8559 + 1.4%
USD / JPY 133.73 -0.5% 133.46 133.88 + 16.2%
GBP / USD 1.2437 -0.5% 1.2495 1.2547 -8.1%
USD / CNH (offshore) 6.7048 + 0.1% 6.6923 6.6899 + 5.5%
BTC / USD 29,981.71 -0.4% 30 506.34 30 459.14 -35.2%
According to Commerzbank analyst Ulrich Leuchtmann, in the afternoon the dollar could “react to surprises in a really unusual way”. If the upcoming US inflation data for May shows an increase of 0.6% to 0.8% compared to the previous month, it should be within the range of market expectations. Then, data for March (+ 1.2%) and April (+ 0.3%) may appear as outliers. In the event of a significant decline, some observers might interpret this in conjunction with the low figure in April as a trend reversal. While it would weaken the prospect of even faster Fed rate hikes, it would actually be a positive signal for the dollar, the analyst said. Because it would minimize the likelihood that the Fed would have to force a “hard landing” in the US economy to stop inflation.
+++++ EAST ASIA FINANCIAL MARKETS +++++
Stock exchanges appeared mainly with tributes. Apart from very weak targets in the US, concerns about inflation continued to have a negative impact. Therefore, players have been eagerly awaiting US consumer prices in May, due in the afternoon. Meanwhile, the day before the ECB raised its inflation forecasts more than the market expected. Investors were therefore concerned that not only the Fed might further increase the pace of interest rate hikes, which could plunge the economy into recession. Shanghai was an exception to the negative daily trend. Consumer and producer prices have eased the situation here. They were as expected and in some cases even relaxed. Against this background, the Hong Kong HSI recovered their initial losses. Technology stocks rose particularly sharply in Hong Kong. According to the economist, the data from China should leave room for further monetary easing. On the Nikkei-225 stock exchange in Tokyo, the most important thing was the sale of interest-sensitive tech stocks. Advantest and Lasertec fell by 4.2 and 4.8 percent, respectively. Seoul Kospi fell for the fourth day in a row. It was negatively affected by weak economic data. In Sydney, where there is no trade on Monday, the S & P / ASX-200 index fell – it recorded its worst weekly loss since April 2020. Real estate and banking stocks in particular suffered heavy losses again.
+++++ LOAN +++++
The credit market continues to grow along with the risk premium. The full range is only revealed when compared with Wednesday. The iTraxx crossover has since gained 38 basis points, or 8 percent. The situation is not much better for the other iTraxx indices: “Spreads higher everywhere,” says DZ Bank. Of particular concern is the fact that the spreads on Spanish and Italian government bonds are widening significantly again. The background is that the ECB ended its bond purchase program on July 1. On July 21, it plans to raise interest rates by 25 basis points, and in September perhaps by 50 basis points. The much higher ECB inflation forecasts also point to potential interest rate hikes.
+++++ COMPANY REPORTS FROM 7.30 +++++
Bayer wins Roundup case in Missouri courthouse
Bayer won a third lawsuit in pending glyphosate compensation claims. A Missouri court ruled in favor of Monsanto on whether the Roundup weed killer causes cancer, Bayer said late Thursday evening. “The jury’s verdict in favor of the company brings this process to a successful conclusion and is consistent with the evidence in the case that Roundup did not cause cancer and did not cause Mr. Shelton’s cancer,” Bayer said.
Covestro extends CEO’s contract with Markus Steilemann until 2028
Markus Steilemann will lead the manufacturer of Covestro materials for the next five years. The supervisory board prematurely extended his contract as president, which lasted until May 2023, until the end of May 2028, the company in Leverkusen reported.
Thyssenkrupp buys the Wismar shipyard and wants to build submarines there
(MORE TO FOLLOW) Dow Jones Newswires
June 10, 2022 07:19 ET (11:19 GMT)