EUROPE MARKET / Stocks and euro still under selling pressure | News

FRANKFURT (Dow Jones) – European stock markets will also remain under pressure on Tuesday. The DAX lost 1.1 percent to 12,687 points and the Euro-Stoxx-50 also fell 1.1 percent to 3,435 points. Rising Covid infections in China and uncertainty about future gas supplies to Europe remain in the spotlight. Investors are holding back their purchases and assume that they may manage to go low. It will be exciting as DAX once again tests its annual minimum of 12,391 points. If the technical double bottom does not prove to be durable, there may be a renewed pressure to sell.

There are also important dates in the coming days that could increase volatility on risky assets such as stocks. So on Wednesday, US consumer prices for June. Investors will keep a close eye on the pace of inflation that may have continued to rise. On the other hand, constant factors such as energy prices may have eased somewhat. Growth should strengthen expectations that the US Federal Reserve will raise interest rates by 75 basis points at the next meeting. Meanwhile, Atlanta Fed chairman Raphael Bostic believes the US economy is strong enough not to fall into a recession. The Fed could raise interest rates this year at the fastest pace in nearly 30 years without triggering a recession.

Moreover, the reporting season starts in the USA. Once again, American banks are starting. JP Morgan and Morgan Stanley will release quarterly data on Thursday and Citigroup, Wells Fargo and Blackrock at the end of the week.

Breaking the euro-dollar parity is only a matter of time

The escape to a safe haven on the currency market, the dollar weighs in to euro. The euro is currently trading just above the face value of $ 1,0008 which, according to Commerzbank’s currency strategists, could be tested intraday. In the morning, the ZEW index may tip the scales. The ZEW index for July will probably show everyone how strong fears about the future are spreading among analysts. Following the euphoria in the second half of last year, when the pandemic may end, the possibility of an energy crisis and recession, in addition to supply chain and price problems, has hit analysts hard since February. But deep red marks on the stock market can weigh on the euro as well.

BASF made a positive surprise on the earnings side in the second quarter

BASF’s preliminary data for the second quarter is a positive surprise. Analysts from Jefferies positively emphasized EBIT at the level of EUR 2.339 billion, the operating result was up 12 percent. higher than consensus and 6 percent. higher than their own estimate. Compared to the same quarter last year, BASF posted a slightly negative volume, with rising price and currency effects and increasing sales growth.

The company has not revised its full-year forecast, although the current forecast indicates a 44% decline in EBIT. y / y and 66 percent yoy in the middle of the year. The uncertainty in the second half of the year remains high for Jefferies analysts. The fact that the “Nutrition & Care” segment had failed was assessed somewhat negatively. It is important for the further development of the business that the gas will soon be pumped again via the Nord Stream 1 gas pipeline. The stock exchange looks to the future and the uncertainty for the coming months is rated higher, as a result of which the share drops by 2.1%.

Deutsche Telekom shares are doing great, falling 0.2 percent. “The sale was certain for a long time,” said one market participant in the Handelsblatt report. Deutsche Telekom is therefore negotiating the final sale of a majority stake in its radio tower business. The last remaining bidder is a consortium of investors KKR, Stonepeak and GIP, several familiar with the case have said. The focus is now on Wednesday when the supervisory board has dealt with the transaction. The valuation of EUR 18 billion of the radio tower portfolio given in the report is in line with earlier expectations. The conclusion of sales in this difficult environment is, in the opinion of a market participant, somewhat positive.

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

Euro Stoxx 50 3 434.54 -1.1% -37.15 -20.1%

Stoxx 50 3,480.91 -0.5% -18.47 -8.8%

DAX 12 686.50 -1.1% -145.94 -20.1%

MDAX 25 323.28 -1.4% -372.25 -27.9%

TecDAX 2 929.52 -1.7% -49.54 -25.3%

SDAX 11 990.03 -1.5% -187.48 -27.0%

FTSE 7 165.88 -0.4% -30.71 -2.5%

CAC 5,945.55 -0.8% -50.75 -16.9%

Fixed Income Market Latest Absolute +/- YTD

10-year return from Germany 1.19 -0.06 +1.37

10-year profitability in the USA 2.94 -0.05 +1.43

FOREX last +/-% Tue 8:14 Mon, 17:42% YTD

EUR / USD 1,0008 -0.3% 1.0024 1.0077 -12.0%

EUR / JPY 137.49 -0.3% 137.70 138.42 + 5.1%

EUR / CHF 0.9857 -0.1% 0.9861 0.9877 -5.0%

EUR / GBP 0.8451 + 0.1% 0.8452 0.8470 + 0.6%

USD / JPY 137.29 -0.1% 137.38 137.34 + 19.3%

GBP / USD 1.1842 -0.4% 1.1863 1.1897 -12.5%

USD / CNH (offshore) 6.7465 + 0.3% 6.7382 6.7152 + 6.2%

Bitcoin

BTC / USD 19,648.98 -2.9% 19,864.00 20 410.60 -57.5%

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

WTI / Nymex 101.40 104.09 -2.6% -2.69 + 40.5%

Brent / ICE 104.82 107.10 -2.1% -2.28 + 39.9%

GAS VT close +/- EUR

Dutch TTF 170.17 163.50 + 3.4% 5.65 + 43.4%

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

Gold (spot) 1 735.26 1 733.98 + 0.1% +1.28 -5.2%

Silver (Spot) 18.99 19.11 -0.6% -0.12 -18.5%

Platinum (Spot) 857.60 873.78 -1.9% -16.18 -11.6%

The future of copper 3.38 3.44 -1.7% -0.06 -23.9%

YTD at the end of the day

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Contact the author: thomas.leppert@wsj.com

DJG / thl / ros

(END) Dow Jones Newswires

Jul 12, 2022 03:34 ET (7:34 GMT)

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