EUROPE MARKETS / Wide Growth – but Haleon got it wrong Debt | News

Author: Herbert Rude

FRANKFURT (Dow Jones) – At the beginning of the week there was a recovery on the European stock exchanges. DAX increased by 0.7 percent to 12,960 points. The Euro Stoxx 50 rose by 1 percent to 3,512 points. “The recovery is therefore also taking place in the period preceding one of the most important dates of the current stock exchange year” Eurozone it’s a strong signal, “said Robomarkets’ Jrgen Molnar, referring to Thursday’s meeting of the European Central Bank. It is expected that the key interest rates will be raised for the first time in several years. Hope recession can be avoided. so that we do not lose our optimism, ”said Shamik Dhar, chief economist of the American bank. On the other hand, the market remains nervous and profit-taking, especially in view of the unclear prospects for Russian gas supplies, meaning that daily highs may not defend themselves.

With the exception of the Pharmaceutical Index and the Food & Beverage Index, all major Stoxx indices rose. Raw materials and crude oil inventories topped the list of winners, with sector indices gaining up to 3 percent. But car ownership, banks and shares in financial services providers also increased significantly, by about 2 percent. In DAX, Zalando recovered 5.1 percent. Deutsche Bank gained 3.5 percent. thanks to the good results of the Scandinavian Nordea Bank and the American bank Goldman Sachs, and BASF gained 3.1 percent. following the recommendation of Bank of America.

The debut of Haleon, the consumer goods division of the British pharmaceutical giant GSK, was rather negative for shareholders. While GSK shares lost 329.40p, new Haleon shares closed at just 308.35p. GSK shareholders received on their accounts one Haleon security for each share held. Haleon’s portfolio also includes well-known brands in Germany such as Sensodyne (toothpaste) and the over-the-counter pain reliever Voltaren. Analysts at AJ Bell were cautious about Haleon’s development during a period of high inflation. According to analyst Dannie Hewson, Haleon has several well-known brands in its portfolio. However, customers are increasingly choosing less expensive products in times of rapidly rising prices, so the company may not be able to achieve significant earnings growth in the near future.

In DAX, Merck fell 5.1 percent, and Fresenius Medical Care and Sartorius also fell significantly. Stoxx Healthcare was down 0.65 percent. Traders talked about profit taking and reallocation after Parma stocks have fared much better than the market as a whole recently.

VW and Porsche are very hard with return goals

Porsche Automobil-Holding gained 2.4 percent and VW 2.8 percent. Dealers referred to the new targets for Porsche’s return. “The statements clearly show that luxury is in motion,” said one market participant. The return on sports car sales is expected to increase from 16 percent to 17 percent to 18 percent this year and to more than 20 percent in the longer term. “This is a very strong and good advertisement for an IPO,” said a market participant. The sports car manufacturer continues to be wholly owned by VW.

We follow the political developments in Italy with interest. During the political crisis, over a thousand mayors called on Prime Minister Mario Draghi to remain in office over the weekend. A statement by Mario Draghi is expected in Parliament on Wednesday. It is unclear whether Draghi will then insist on his offered resignation or present a plan to continue with the government’s activities. The Italian stock market index gained 1.1 percent. The new impulse, especially for Italian bonds, is likely to come on Thursday. Then the European Central Bank could present its instrument with which it intends to prevent too far the yields in the euro area drift away.

The euro strengthened slightly and was traded at $ 1.0160 at the close of the stock exchanges. It will also be exciting for him on Thursday when the ECB will organize its first, as expected rate hike for several years, probably by 25 basis points. However, given the high level of inflation, many market players find this too cautious.

Nordea’s profitability was assessed positively. According to the industry, pre-tax profit was approximately 10 percent higher than market expectations. The Helsinki-based bank reported a net profit of € 1.06 billion, against an expected 928 million. The share buyback was also a support. The price rose sharply by 6 percent.

Solvay gained 4.5 percent after second-quarter results were well above expectations. The Belgian chemical company also announced an increase in its annual forecast for July 28.

Deliveroo cuts its growth forecast in half – but the price is rising strongly

One retailer said that Deliveroo’s growth forecast was “fairly bright” by almost half. But it seems to be more than priced as the price went up 6.9 percent. Just Eat and Delivery Hero gained about 8 percent.

For Nell, this was a good 19 percent increase. The Norwegian company has received a record order for the supply of electrolysers for the production of hydrogen worth 45 million euros. According to RBC analysts, the average selling price is in the lower range, which is not unusual for such a large order. Production is to take place in Herya, and delivery is scheduled from February 2023 to mid-2024. According to Nel, the contract could also be extended with additional installation elements for the project. The order is from an unnamed US customer for industrial use.

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Index Closing Development Development Development

. was absolute in% of

. the beginning of the year*

Euro Stoxx 50 3 511.86 +34.66 + 1.0% -18.3%

Stoxx 50 3 517.59 +21.78 + 0.6% -7.9%

Stoxx 600 417.63 +3.85 + 0.9% -14.4%

XETRA DAX 12 959.81 +95.09 + 0.7% -18.4%

FTSE-100 London 7 223.24 +64.23 + 0.9% -3.1%

CAC-40 Paris 6 091.91 +55.91 + 0.9% -14.8%

AEX Amsterdam 681.10 +9.18 + 1.4% -14.6%

ATHEX-20 Athens 1,917.52 +21.41 + 1.1% -10.5%

BEL-20 Brussels 3 750.69 +46.93 + 1.3% -13.0%

BUX Budapest 40 355.51 + 696.28 + 1.8% -20.4%

OMXH-25 Helsinki 4 579.01 +46.06 + 1.0% -18.6%

ISE NAT. 30 Istanbul 2 614.17 +87.30 + 3.5% + 29.1%

OMXC-20 Copenhagen 1 750.87 +27.65 + 1.6% -6.1%

PSI 20 Lisbon 5914.67 +52.96 + 0.9% + 7.2%

IBEX-35 Madrid 7 963.10 +17.20 + 0.2% -8.6%

FTSE-MIB Milan 21 169.12 +235.86 + 1.1% -23.5%

RTS Moscow 1 168.73 +7.20 + 0.6% -26.8%

OBX Oslo 1 091.85 +32.95 + 3.1% + 2.2%

PX Praga 1 248.72 +24.96 + 2.0% -12.4%

OMXS-30 Stockholm 1 930.50 +26.68 + 1.4% -20.2%

WIG-20 Warsaw 1,669.48 +49.35 + 3.0% -26.4%

ATX Vienna 2,898.81 +36.36 + 1.3% -25.1%

SMI Zurich 11,010.18 +28.09 + 0.3% -14.5%

* at the end of the day

Fixed Income Market Last Absolute +/- YTD

10-Year Return from Germany 1.21 +0.08 +1.39

10-year profitability in the USA 3.00 +0.08 +1.49

FOREX last +/-% Mon, 8:30 Fri, 17:34% YTD

EUR / USD 1.0164 + 0.8% 1.0089 1.0091 -10.6%

EUR / JPY 140.46 + 0.5% 139.48 139.81 + 7.3%

EUR / CHF 0.9923 + 0.7% 0.9846 0.9869 -4.4%

EUR / GBP 0.8476 -0.3% 0.8489 0.8507 + 0.9%

USD / JPY 138.20 -0.3% 138.25 138.53 + 20.1%

GBP / USD 1.1991 + 1.0% 1.1887 1.1865 -11.4%

USD / CNH (offshore) 6.7514 -0.2% 6.7549 6.7666 + 6.3%

Bitcoin

BTC / USD 22,464.50 + 6.9% 21,954.74 20,855.24 -51.4%

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

WTI / Nymex 101.88 97.59 + 4.4% 4.29 + 41.2%

Brent / ICE 105.87 101.16 + 4.7% 4.71 + 41.3%

GAS VT close +/- EUR

Dutch TTF 159.41 160.80 -0.1% -0.16 + 35.2%

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

Gold (spot) 1,711.29 1,770.70 + 0.2% + 3.59 -6.5%

Silver (Spot) 18.88 18.70 + 1.0% +0.18 -19.0%

Platinum (Spot) 871.55 848.75 + 2.7% +22.80 -10.2%

Copper Future 3.35 3.23 + 3.6% +0.12 -24.6%

YTD at the end of the day

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DJG / hru / cln

(END) Dow Jones Newswires

July 18, 2022 12:11 PM ET (4:11 PM GMT)

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