EUROPE MARKET / equity markets trying to stabilize after sell-off | News

FRANKFURT (Dow Jones) – After the last sell-off on Friday afternoon, European stock markets are showing some signs of stabilization. In retail, however, little importance is attached to development. “Worries about the recession are controlling the market,” said one market participant. The DAX shows a slight change at 12,788 points, the Euro-Stoxx-50 loses 0.2 percent to 3,449 points.

Before the second-quarter earnings season begins, negative earnings adjustments could build up and weigh on equities despite their currently lower valuations, warns Dirk Steffen, investment strategist at Deutsche Bank. However, prices should already be priced in in conditions of a significant economic slowdown, so that should the macroeconomic situation stabilize, there could be a quick opposite move.

Inflationary pressure continues to rise

Price pressure in Europe, which increased much more than expected again in June, has no negative impact. The reason may be that the rising risk of recession suggests that central banks may be forced to adopt a more moderate stance in monetary policy in the near future. Consumer prices in Eurozone increased by 0.88 percent. in June, compared to the previous month, an increase of 0.6% was expected.

In the Stoxx sector indices, the technology is clearly at the bottom with a minus 1.5 percent. along with raw materials (-1.8%). This is mainly due to very weak semiconductor stock prices after Micron in the US spoke of weakening demand in its outlook. Infineon and ASML lose up to 3.3 percent, and STMicro 1.8 percent. At TecDAX, Siltronic (-2.9%) and Aixtron (-6%) are under pressure.

Siemens lists Siemens Energy

The decline in the value of the subsidiary Siemens Energy by EUR 2.8 billion (+ 2.1%) by Siemens (-1.3%) is assessed relatively calmly. Initially, they say, it is a purely accounting matter that does not affect liquidity. According to Jefferies, Siemens management has insisted in recent months that the Energy package will not be sold below book value. The write-off announced now may pave the way for more “aggressive” sales.

Jefferies, however, suspects that Siemens will first wait for Energy to raise capital to finance the full acquisition of Siemens Gamesa.

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Stock index last + / -% absolute + / -% YTD

Euro Stoxx 50 3 449.11 -0.2% -5.75 -19.8%

Stoxx 50 3 435.83 -0.4% -14.07 -10.0%

DAX 12.787.76 + 0.0% 3.99 -19.5%

MDAX 25 773.65 -0.2% -49.80 -26.6%

TecDAX 2,866.06 -0.7% -19.56 -26.9%

SDAX 11 898.42 + 0.1% 17.23 -27.5%

FTSE 7,161.74 -0.1% -7.54 -2.9%

CAC 5 927.41 + 0.1% 4.55 -17.1%

Fixed Income Market Latest Absolute +/- YTD

10-year return from Germany 1.34 +0.00 +1.52

10-year profitability in the USA 2.97 -0.04 +1.46

FOREX last +/-% Fri 8:34 Thu 17:31% YTD

EUR / USD 1.0458 -0.2% 1.0452 1.0463 -8.0%

EUR / JPY 141.55 -0.5% 141.09 142.20 + 8.2%

EUR / CHF 1.0033 + 0.2% 0.9993 0.9989 -3.3%

EUR / GBP 0.8662 + 0.6% 0.8621 0.8609 + 3.1%

USD / JPY 135.36 -0.3% 134.96 135.88 + 17.6%

GBP / USD 1.2073 -0.9% 1.2128 1.2156 -10.8%

USD / CNH (offshore) 6.7079 + 0.2% 6.7163 6.6996 + 5.6%

Bitcoin

BTC / USD 19 127.00 + 1.8% 19 387.29 19 167.22 -58.6%

ROHL last VT-Settl. +/-% +/- USD% YTD

WTI / Nymex 108.11 105.76 + 2.2% 2.35 + 49.8%

Brent / ICE 111.22 109.03 + 2.0% 2.19 + 48.5%

GAS VT close +/- EUR

Dutch TTF 147.81 145.37 + 2.3% 3.30 + 46.9%

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

Gold (spot) 1,790.94 1,807.32 -0.9% -16.38 -2.1%

Silver (Spot) 19.75 20.27 -2.6% -0.52 -15.3%

Platinum (Spot) 886.15 897.13 -1.2% -10.98 -8.7%

The future of copper 3.60 3.71 -3.2% -0.12 -19.1%

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

DJG / mpt / ros

(END) Dow Jones Newswires

Jul 1 2022 6:56 AM ET (10:56 GMT)

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