PORANNA CHECK-IN – Germany / Europe | News

Morning Market Review by Dow Jones Newswires.

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+++++ THEME OF THE DAY +++++

Inflationary pressure in Germany is likely to increase again in June. Economists expect the Harmonized Index of Consumer Prices (released at 2pm) N will increase by 0.4 percent month on month, bringing the annual inflation rate to 8.8 percent (May: 8.7 percent). The rise in consumer prices in Germany has probably been slowed down by two specific factors: the reduction in tax rates on gasoline and diesel and the introduction of a € 9 ticket for local rail transport. The most important leading indicator of inflation data in the euro zone to be released on Friday are the German price data, which – in line with the analysts’ expectations – will show a renewed increase in inflationary pressure. For the ECB, this would probably mean that the inflation forecasts, which it released only in June, are no longer valid. The Spanish HICP data will also be released on Wednesday. Inflation is projected to rise to 8.7 (8.5) percent here.

For the domestic consumer price index in Germany, interviewed economists expect a monthly increase of 0.5 percent and an annual inflation rate of 8.0 (7.9). Meanwhile, the annual inflation rate in North Rhine-Westphalia (NRW) fell sharply to 7.5% in June. 8.1 percent each in May.

+++++ COMPANY OUTLOOK +++++

07:00 DE / Hornbach Holding AG & Co KGaA, detailed results for Q1

08:00 SE / Hennes & Mauritz AB, detailed result 2Q

10:00 DE / Nagarro SE, online AGM

11:00 LU / Grand City Properties SA, online AGM and extraordinary AGM online (from 11:40)

11:00 LU / Adler Group SA, online AGM

13:00 DE / Deutsche Brse AG, Investor’s Day with update on

Implementation of the medium-term plan “Kompas 2023”

DIVIDEND DETECTION

Cancom 1.00 EUR

German land auction EUR 1.50

German goods 0.60 EUR

+++++ ECONOMIC PERSPECTIVES +++++

– THIS

09:00 HICP and consumer prices June (preliminary)

HICP

FORECAST: + 8.7% y / y

earlier: + 8.5% y / y

– EU

10:00 ECB, M3 money supply and May loans

FORECAST: + 5.8% y / y

earlier: + 6.0% y / y

Three-month rate

FORECAST: + 6.0% y / y

earlier: + 6.2% y / y

11:00 June Economic Mood Index

economic sentiment Eurozone

FORECAST: 103.0

previously: 105.0

Confidence in the industry Eurozone

FORECAST: +5.0

before: +6.3

Trust of euro area consumers

FORECAST: -23.6

Initial estimate: -23.6

previously: -21.2

– PL

14:00 consumer prices June (preliminary)

FORECAST: + 0.5% yoy / + 8.0% yoy

previously: + 0.9% y / y / + 7.9% y / y

HICP

FORECAST: + 0.4% y / y / + 8.8% y / y

previously: + 1.1% y / y / + 8.7% y / y

– US

14:30 BIP (3rd edition) 1Q

on an annual basis

FORECAST: -1.5% q / q

provisionally: 2nd edition: -1.5% y / y

previously: Q4: + 6.9% q / q

GDP deflator

FORECAST: + 8.1% q / q

Initial: second edition: + 8.1% y / y

previously: Q4: + 7.1% q / q

16:30 Raw inventory data (week) of the state

Energy Information Administration (EIA)

+++++ FUTURES OVERVIEW / INDEXES +++++

Currently:

INDEX reading +/-

DAX future 13,148.00 + 0.4%

E-Mini Future S&P 500 3 835.00 + 0.2%

E-Mini Future Nsdq-100 11 723.00 + 0.4%

Nikkei-225 26 735.90 -1.2%

Composite Shanghai 3 382.24 -0.8%

+/- tics

Bunds Futures 146.60 +124

Tuesday:

INDEX close +/-

DAX 13 231.82 + 0.3%

DAX future 13 100.00 -0.3%

XDAX 13 119.50 -0.3%

MDAX 27 119.15 -0.1%

TecDAX 2,950.70 -0.3%

EuroStoxx50 3 549.29 + 0.3%

Stoxx50 3 505.42 + 0.2%

Dow Jones 30,946.99 -1.6%

S&P 500 Index 3,821.55 -2.0%

Nasdaq Comp. 11,181.54 -3.0%

EUREX last +/- tics

The future of the Bund 145.36 -104

+++++ FINANCIAL MARKETS +++++

EUROPE

Prospects: European equity markets are expected to be in negative territory at the start of trading. The direction is initially set by Wall Street, which continued to fall after the close of stock exchanges in Europe. The reason was the weak confidence of US consumers, the index fell in June to the lowest level since February 2021. The sub-indices for the assessment of the current situation and expectations also decreased. This has fueled fears that the announced harsh stance by the US Federal Reserve on the upcoming interest rate hikes will increase the risk of a recession. However, the decisive impulse may be new price data. For example, inflation in North Rhine-Westphalia in June was more favorable than expected, causing the Bund’s future to pick up and stock sentiment to recover somewhat. For Germany as a whole, data is released only in the afternoon. Price data is also transferred from Spain. They arrive after the EU on Friday.

Review: A Little Tighter – The mood was supported by the relaxation of Chinese coronation rules. Among other things, it fueled speculation about a greater demand for raw materials. At the top with a plus of 2 percent. included the oil and gas stock index. The commodity stock index rose 1.2 percent. Philips lost 1.8 percent. The periodic report on the problematic fans of the group did not bring real relief. SAS grew by almost 6 percent. The shares in the diseased airline benefited from the news that the Norwegian government had in principle agreed to waive the repayment of the aid in exchange for shares in the company. In the bond market, prices fell sharply, so yields rose.

DAX / MDAX / TECDAX

Slightly stronger – Adidas and Puma lost as much as 2.2 percent. Competitor Nike released quarterly data at the end of Monday, which was characterized by increased inventories and supply chain bottlenecks. Siemens closed unchanged after the acquisition of Brightly Software in the US for almost $ 1.6 billion. According to analysts, the potential contribution to profit is likely to be small. In MDAX, Hugo Boss rose 1.6 percent after Jefferies analysts raised stake to “buy”. With an increase of 4.6 percent. K + S was positively assessed by DZ Bank. The Friedrich Vorwerk group jumped by a good 7 percent. The company is building part of the connection line for the LNG terminal in Wilhelmshaven. Bet-at-home gained a good 6 percent, although the online betting provider cut its forecasts after losing a legal battle in Switzerland. Here, the participants could act in accordance with the motto “Sell the rumor, buy the fact”.

XETRA POST REPLACEMENT

Contrary to the overall weak trend, Continental was traded 1.8%. higher. According to an industry statement, Exane BNP is to upgrade the title to “Outperform” from “Neutral”.

USA – SHARES

Very Poor – Weak US consumer confidence led to strong sales. In June, the index fell to its lowest level since February 2021. This increased fears of the announcement of a harsh stance by the US Federal Reserve on the upcoming interest rate hikes and the associated risk of recession. The indexes initially rose as a result of the coronavirus loosening in China. Nike (-7.0%) exceeded expectations in the fourth business quarter to announce the buyback and sounded optimistic about the outlook. However, the market was dominated by statements about higher inventories and bottlenecks in the supply chain. Banks’ stocks performed better than the market as a whole. After institutes successfully passed the US Federal Reserve’s annual stress test, they are now reporting an increase in dividends. Morgan Stanley (+ 0.9%) also announced a share buyback program worth up to $ 20 billion.

USA – BONDS

Term Profitability Bp to VT Profitability VT +/- Bp YTD

2 years 3.13 +1.1 3.12 240.0

5 years 3.25 +0.1 3.25 199.2

7 years 3.26 -1.5 3.28 182.2

10 years 3.19 -1.6 3.21 168.2

30 years old 3.29 -2.4 3.32 139.3

Bonds stabilized after the recent sharp sell-off. The 10-year rate of return fell 1.6 basis points to 3.19%.

+++++ FOREX MARKET +++++

last +/-% 0:00 Tue 18:03% YTD

EUR / USD 1.0512 -0.1% 1.0522 1.0532 -7.5%

EUR / JPY 143.11 -0.1% 143.25 143.45 + 9.3%

EUR / CHF 1.0057 -0.2% 1.0447 1.0073 -3.1%

EUR / GBP 0.8618 -0.2% 0.8636 0.8636 + 2.6%

USD / JPY 136.16 + 0.0% 136.13 136.20 + 18.3%

GBP / USD 1.2199 + 0.1% 1.2184 1.2194 -9.9%

USD / CNH 6.7048 + 0.0% 6.7038 6.7073 + 5.5%

Bitcoin

BTC / USD 20 286.38 -0.4% 20 371.23 20 571.56 -56.1%

(MORE TO FOLLOW) Dow Jones Newswires

June 29, 2022 01:30 ET (5:30 GMT)

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