MARKET IN EUROPE / Very strong stock exchanges – relax in Italy | News

FRANKFURT (Dow Jones) – European stock markets closed much tighter on Wednesday. The special ECB meeting had a supportive effect amid the bond market turmoil. The ECB has ordered a new instrument to limit the yield spread between government Eurobonds. Yields on the Italian bond market fell. The DAX gained 1.4 percent to 13,485 points and the Euro-Stoxx-50 rose by 1.6 percent to 3,532 points. The Milan MIB index rose by 2.9 percent.

In addition, the ECB has chosen to be flexible in reinvesting payments on government bonds purchased under the PEPP pandemic purchase program. The ECB can now concentrate its reinvestments on bonds of countries whose government bond yields have risen more than in other countries.

The mere announcement of an extraordinary meeting was enough to lower yields on the Italian bond markets. The return on the 10-year paper was 3.86 percent when the market closed. It has recently amounted to 4.21 percent. Banks and insurance shares were supported by easing in the bond markets: Munich Re went up 3.1%, Unicredit went up 3.7%. The insurance sector grew by 2.7 percent.

Everything is waiting for usrate hike

The most important event of the month is scheduled for the evening with the US Federal Reserve’s interest rate decision. Only then is it possible to correctly price the stock, which analysts believe should also reduce volatility in the markets. After the shock related to accelerating inflation in the US, sentiment on Wall Street shifted towards aggressive rate hikes. A large rate hike of 75 basis points (bp) is therefore considered a doomed: the probability of this is now estimated at almost 100 percent.

Unlike the ECB, a firm fight against inflation would be welcome in the US: Bank of America strategists even see a chance that a 100 bp hike could trigger a rally of relief. However, if it is only up to 50 bp, the market may consider it only half-way.

Additionally, data on industrial production in China in May was also helpful. It was strong despite the corona blockade and is up 0.7 percent compared to the previous year. In turn, economists expected minus 1 percent.

The daily winners at the DAX were the Delivery Hero with a plus of 9.1 percent. The stocks are very volatile and may have benefited from the short selling range. The daily losers are Siemens Healthineers with a downside of 6.6 percent. Getinge’s weaker outlook (-17.5%) weighed on stocks in medical technology companies. The Swedes slashed the prospect of organic sales growth, partly due to weaker demand for corona vaccines.

H&M collapsed despite decent numbers

Despite decent data, H&M fell by 6.5 percent. Jefferies noted that re-openings in Europe have led to strong demand that has continued in recent weeks. The effects, however, were less spectacular than in the case of Inditex. Investors are interested in how far the Swedish apparel company can counterbalance the increasing cost pressure with a revival in prices.

Cropenergies shares surged 4.4 percent after the revised annual forecast for 2022/23. The bioethanol producer now expects an EBITDA of between EUR 205 and 255 million after previously expected EUR 145 to 195 million. The parent company Sdzucker also raised the forecast (+ 7.4%). The expected increases in biofuel prices, but also good business in the specialist industry, should lead to around EUR 200 million in higher sales and EUR 100 million in higher operating profit for the current fiscal year.

Gerresheimer shares rose by 15.7 percent. There have been reports that Bain Capital is interested in acquiring the company. As Gerresheimer reportedly dismissed this, the fantasy of higher wages is in the room, it was said in trading.

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Index Closing Development Development Development

. was absolute in% of

. the beginning of the year

Euro Stoxx 50 3 532.32 +57.14 + 1.6% -17.8%

Stoxx 50 3 443.37 +38.31 + 1.1% -9.8%

Stoxx 600 413.10 +5.78 + 1.4% -15.3%

XETRA-DAX 13 485.29 +180.90 + 1.4% -15.1%

FTSE-100 London 7,273.41 +85.95 + 1.2% -2.7%

CAC-40 Paris 6,030.13 +80.29 + 1.3% -15.7%

AEX Amsterdam 663.21 +10.34 + 1.6% -16.9%

ATHEX-20 Athens 2 028.26 +47.09 + 2.4% -5.3%

BEL-20 Brussels 3 756.30 +79.11 + 2.2% -12.9%

BUX Budapest 39 318.71 +612.42 + 1.6% -22.5%

OMXH-25 Helsinki 4 668.16 +60.14 + 1.3% -17.3%

ISE NAT. 30 Istanbul 2 778.50 +21.62 + 0.8% + 37.2%

OMXC-20 Copenhagen 1,610.61 +15.19 + 1.0% -13.6%

PSI 20 Lisbon 5986.96 +25.19 + 0.4% + 8.0%

IBEX-35 Madrid 8 174.70 +108.30 + 1.3% -6.2%

FTSE-MIB Milan 22,473.56 +626.67 + 2.9% -20.1%

RTS Moscow 1 280.38 +7.41 + 0.6% -19.8%

OBX Oslo 1127.02 +7.85 + 0.7% + 5.5%

PX Praga 1 306.07 +15.67 + 1.2% -8.4%

OMXS-30 Stockholm 1 946.86 +15.47 + 0.8% -19.5%

WIG-20 Warsaw 1 707.11 +3.04 + 0.2% -24.7%

ATX Vienna 3 135.78 +49.04 + 1.6% -19.4%

SMI Zurich 10 783.59 +84.52 + 0.8% -16.3%

Fixed Income Market Latest Absolute +/- YTD

10-year return from Germany 1.64 -0.11 +1.82

10-year profitability in the USA 3.41 -0.07 +1.90

FOREX last +/-% Wed 8:38 Tue 17:20% YTD

EUR / USD 1.0389 -0.3% 1.0444 1.0416 -8.6%

EUR / JPY 139.70 -1.1% 141.21 140.46 + 6.7%

EUR / CHF 1.0413 -0.2% 1.0467 1.0424 + 0.4%

EUR / GBP 0.8619 -0.7% 0.8719 0.8672 + 2.6%

USD / JPY 134.48 -0.8% 134.98 134.86 + 16.8%

GBP / USD 1.2052 + 0.4% 1.2002 1.2010 -10.9%

USD / CNH (offshore) 6.7169 -0.6% 6.7206 6.7562 + 5.7%

Bitcoin

BTC / USD 21 296.89 -1.0% 21 102.09 22 397.34 -53.9%

ROHOEL the last VT-Settl. +/-% +/- USD% YTD

WTI / Nymex 117.35 118.93 -1.3% -1.58 + 61.2%

Brent / ICE 120.04 121.17 -0.9% -1.13 + 59.1%

METALS last day before +/-% +/- USD% YTD

Gold (spot) 1,822.58 1,808.40 + 0.8% +14.18 -0.4%

Silver (Spot) 21.56 21.11 + 2.1% +0.45 -7.5%

Platinum (Spot) 936.75 925.03 + 1.3% +11.72 -3.5%

The future of copper 4.17 4.16 + 0.3% +0.01 -6.2%

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Contact to the author: manuel.priego-thimmel@wsj.com

DJG / mpt / cln

(END) Dow Jones Newswires

June 15, 2022 at 12:15 PM EST (4:15 PM GMT)

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