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Author: Herbert Rude
FRANKFURT (Dow Jones) – European stock exchanges got rid of weaknesses in the morning and gained significant growth in the afternoon. The DAX rose by 1.0 percent to 13,083 points and the Euro-Stoxx-50 by the same amount to 3,545 points. However, the turnover is very low and market participants talk about “wait and see” trading. On the one hand, the reporting season has been relatively good so far and the valuations have dropped significantly, on the other hand, the gas crisis is very nervous on the market, especially in Germany. Finally, market participants are still waiting for the European Central Bank, which is likely to raise interest rates on Thursday for the first time in eleven years. At the same time, speculation about a relatively large rate hike by 50 basis points is growing again. The euro benefits from this, which is now clearly breaking away from parity at EUR 1.0250.
Apple’s development is now seen much calmer than in the morning. Apple is apparently gearing up for a possible economic downturn. The iPhone manufacturer wants to act more cautiously in uncertain times, reports the Bloomberg agency, citing well-informed people. However, the strong dollar is also a stumbling block for Apple. Europe’s tech sector is now holding up after a significant temporary drop in the morning.
Banks on the winning side – praise for the ECB
Banks are on the top of the winning side, their Stoxx index up 1.8%. Peripheral banks in particular, including Caixa, Sabadell, Bankinter and Unicredit, gain at least 4%. “The ECB’s new bond tool against a bond yield mismatch is likely to be praised in advance,” said one market participant. Additionally, a moderate increase in interest rates would be good for the industry as a whole, he believes. The winning side is also Commerzbank with an increase of 4.4%.
Car titles are also doing well in the market, with their Stoxx sector index up 1.2%. Smaller subsequent purchases raise VW by 2.2 percent to € 138.90. Dealers refer to Porsche’s positive return targets as of Monday afternoon. In addition, problems with the supply chain should now alleviate even more. However, the turnover is very low. Jefferies analysts confirm a good second quarter for the Swedish commercial vehicle manufacturer Volvo. The outlook is somewhat more cautious as it relates to the macroeconomic uncertainty and the necessary flexibility that should worsen. Nevertheless, the rate clearly turned out to be positive and is growing by 2.8%.
In addition, market participants continued to rely on non-cyclical equities, and the consumer goods index grew 1.4%. Burberry gained 3.2%, Adidas 3.1% and Hugo Boss 2.1%.
In pharmaceutical stocks, Novartis gained 1.2 percent. According to one participant, the quarterly data from Novartis is “in line”. Turnover is slightly below his expectations, while the income side made a positive surprise. It is also slightly positive that the outlook for the subsidiary Sandoz has slightly increased. In turn, Haleon fell by 2.1 percent at the beginning of the week. after an already disappointing debut on the stock exchange.
EDF plus 15 percent – nationalization planned
In Paris, after days of suspension, EDF sells almost 15%. up to 11.74 euros. The French state is planning a takeover for around 12 euros. The electricity supplier’s shares are then to be liquidated from the market. They closed at € 10.22 on July 12, after which they were suspended from trading. Following EDF, Eon recovered 2.5% and RWE by 2.3%.
While the French railway technology group Alstom increased its turnover in the first quarter of this year, it was also hit by the economic hardship caused by the decline in orders. The price is down 6.2 percent, especially as Alstom talks about a more complex macroeconomic environment and inflation is likely to weigh on yields.
Bilfinger lost 13 percent after Bank of America drastically downgraded its rating from “buy” to “underperforming”. The record of the industrial camera manufacturer Basler bends by almost two-thirds. But this is only because of the issue of bonus shares. Instead of one, Basler’s shareholders now have three shares on their securities accounts.
Stock index last + / -% absolute + / -% YTD
Euro Stoxx 50 3 545.25 + 1.0% 33.39 -17.5%
Stoxx 50 3 541.78 + 0.7% 24.19 -7.3%
DAX 13,083.39 + 1.0% 123.58 -17.6%
MDAX 26 118.62 + 0.8% 197.39 -25.6%
TecDAX 2,932.23 + 0.2% 6.93 -25.2%
SDAX 12,242.51 + 0.2% 23.45 -25.4%
FTSE 7 270.05 + 0.6% 46.81 -2.2%
CAC 6141.98 + 0.8% 50.07 -14.1%
Fixed Income Market Last Absolute +/- YTD
10-year return from Germany 1.23 +0.02 +1.41
10-year profitability in the USA 2.98 -0.01 +1.47
FOREX last +/-% Tue 8:31 Mon, 17:25% YTD
EUR / USD 1.0234 + 0.9% 1.0158 1.0169 -10.0%
EUR / JPY 140.81 + 0.5% 140.09 140.51 + 7.6%
EUR / CHF 0.9900 -0.1% 0.9908 0.9930 -4.6%
EUR / GBP 0.8519 + 0.4% 0.8481 0.8476 + 1.4%
USD / JPY 137.60 -0.4% 138.01 138.18 + 19.5%
GBP / USD 1.2013 + 0.5% 1.1975 1.1996 -11.2%
USD / CNH (offshore) 6.7483 -0.2% 6.7526 6.7530 + 6.2%
BTC / USD 22 154.06 + 2.3% 22,088.14 22 247.30 -52.1%
ROHOEL the last VT-Settl. +/-% +/- USD% YTD
WTI / Nymex 101.45 102.60 -1.1% -1.15 + 40.6%
Brent / ICE 105.20 106.27 -1.0% -1.07 + 40.4%
GAS VT close +/- EUR
Dutch TTF 161.08 159.60 + 2.4% 3.82 + 41.5%
METALS last day before +/-% +/- USD% YTD
Gold (spot) 1,712.27 1,709.37 + 0.2% +2.90 -6.4%
Silver (Spot) 18.81 18.70 + 0.6% +0.11 -19.3%
Platinum (spot) 883.95 866.43 + 2.0% +17.52 -8.9%
The future of copper 3.29 3.35 -1.8% -0.06 -26.0%
YTD at the end of the day
DJG / hru / cln
(END) Dow Jones Newswires
July 19, 2022 10:09 ET (14:09 GMT)
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