Evening Market Review, Compiled by Dow Jones Newswires:
+++++ SHARE MARKETS (18:35) +++++
INDEX reading + -% + -% YTD *
EuroStoxx50 3 587.44 + 2.15% -16.54%
Stoxx50 3 562.09 + 1.27% -6.71%
DAX 13.308.41 + 2.69% -16.22%
FTSE 7 294.16 + 0.98% -2.18%
CAC 6 201.22 + 1.79% -13.31%
DJIA 31 646.60 + 1.85% -12.91%
S&P 500 3,912.94 + 2.14% -17.90%
Nasdaq Comp. 11,635.00 + 2.42% -25.63%
Nasdaq-100 12 164.74 + 2.42% -25.46%
Nikkei-225 26 961.68 + 0.65% -6.36%
EUREX stand + ticks
The future of the Bund 151.07-114
* on the previous day
+++++ GOODS MARKETS +++++
ROHOEL the last VT-Settl. +/-% +/- USD% YTD
WTI / Nymex 103.77 102.60 + 1.1% 1.17 + 43.8%
Brent / ICE 106.83 106.27 + 0.5% 0.56 + 42.6%
GAS VT close +/- EUR
Dutch TTF 154.60 159.60 -1.7% -2.66 + 41.5%
METALS last day before +/-% +/- USD% YTD
Gold (spot) 1,713.10 1,709.37 + 0.2% +3.73 -6.4%
Silver (Spot) 18.82 18.70 + 0.7% +0.12 -19.3%
Platinum (Spot) 876.74 866.43 + 1.2% +10.31 -9.7%
The future of copper 3.29 3.35 -1.8% -0.06 -26.0%
YTD at the end of the day
Oil prices remain stagnant after the previous day’s rally. However, according to the industry, tight supply should prevent a clear setback. In Oanda, it is possible that oil has reached a price peak so far. Prices should not fall significantly, however, unless countries in the OPEC + interest group surprise with a sharp increase in production volume.
+++++ US FINANCIAL MARKET +++++
Very hard – Part of the positive momentum for Wall Street on Tuesday will come from Europe. Reports from the community about the resumption of Russian gas supplies via the Nord Stream 1 pipeline since Thursday have caused an increase in prices on European exchanges. This could eliminate the risk of a recession in Europe, which would also have a positive effect on the US economy. In the case of Apple (+ 1.7%), the initial shock has eased with the report that the iPhone manufacturer is gearing up for an economic slowdown. While IBM (-6.5%) exceeded expectations in terms of sales and profits, it worsens the outlook for the second half of the year: a strong dollar will become a problem for IBM and likely slow down sales growth. Johnson & Johnson (-0.7%) also cut their forecasts for this year due to the strength of the dollar, but did better than expected in the second quarter. Toy maker Hasbro (+ 1.8%) returned to profitability, beating expectations. On the other hand, the company dealing with defense technologies Lockheed Martin (-1.3%) disappointed expectations, and the prospects are also not convincing. Novavax grew 12.7 percent after the company announced a deal with South Korean SK Bioscience to produce the Covid-19 vaccine, which also protects against the omicron strain of the virus.
In the bond market, fears of a recession are somewhat overestimated, yields are rising along with falling prices. However, the yield curve is still inverted, which is seen as a harbinger of a recession.
+++++ COMPANY OUTLOOK +++++
22:00 US / Netflix Inc, 2Q results
+++++ FINANCIAL MARKETS EUROPE +++++
Very emphatic – Reports on the resumption of gas supplies via Nord Stream 1 to heated shares. The German stock market, which is considered to be particularly dependent on supply, has benefited particularly strongly. Chemical inventories are among the beneficiaries. Here BASF gained 4.6 percent and Covestro 5.8 percent. Among utilities, Eon grew by 4.3 percent and RWE by 4 percent, while Uniper recovered a good 10 percent in the second row. The Stoxx Bank index increased by 3 percent. Peripheral banks such as Caixa, Sabadell, Bankinter and Unicredit, in particular, have risen sharply, many of which have gained 6 to 7 percent. “The ECB’s new bond tool against a bond yield mismatch is likely to be praised in advance,” said one market participant. Moreover, a modest rate hike by the European Central Bank on Thursday would benefit the industry as a whole, he said. Car titles also rose with the Stoxx sector index up 3.2 percent. Lower connection slippage raised VW by 3.9. Dealers commented on the positive targets for Porsche’s return for Monday afternoon. Jefferies confirmed a good second quarter for the Swedish commercial vehicle manufacturer Volvo (+ 3.4%). In addition, market participants continued to focus on non-cyclical stocks, with the consumer goods producer index increasing 2.1%. According to one participant, the quarterly Novartis figures (+ 1.5%) are “in line”. After the days of suspension, the EDF rose by almost 15 percent to 11.73 euros. The French state is planning a takeover for around 12 euros. While Alstom (-2.6%) posted more in the first quarter of this year, it also suffered from economic hardship due to declining orders. Bilfinger was down 11 percent after Bank of America drastically cut its stake from “buy” to “underperforming”. The industrial camera manufacturer Basler’s course has staggered by almost two-thirds. But this is only because of the issue of bonus shares.
+++++ CURRENCIES +++++
FOREX last +/-% Tue, 8:31 Mon, 17:25% YTD
EUR / USD 1.0239 + 0.9% 1.0158 1.0169 -10.0%
EUR / JPY 141.27 + 0.8% 140.09 140.51 + 7.9%
EUR / CHF 0.9916 + 0.0% 0.9908 0.9930 -4.4%
EUR / GBP 0.8521 + 0.4% 0.8481 0.8476 + 1.4%
USD / JPY 137.98 -0.1% 138.01 138.18 + 19.9%
GBP / USD 1.2018 + 0.5% 1.1975 1.1996 -11.2%
USD / CNH (offshore) 6.7459 -0.2% 6.7526 6.7530 + 6.2%
BTC / USD 23 350.18 + 7.8% 22 088.14 22 247.30 -49.5%
YTD at the end of the day
Meanwhile, the dollar continues to rebound from its most recent 20-year high as stakeholders weigh the Fed’s possibilityrate hike by 100 basis points. A rate hike of 75 basis points is now again considered the most likely scenario. The dollar index fell by another 0.7 percent. Easing recession fears also weighs on the dollar. Meanwhile, the euro is recovering slightly from speculation that the European Central Bank may raise interest rates by more than its previously announced 25 basis points on Thursday.
+++++ EAST ASIA FINANCIAL MARKETS +++++
East Asian stocks showed on Tuesday mostly with declines. Market participants commented on the negative signals from Wall Street, where soaring oil prices reiterated concerns about inflation. Breaking the trend, the Nikkei 225 went up. Here, after the summer break on Monday, the positive trend from the beginning of the week rebounded. But it also bolstered hopes for a recovery in corporate profits from the Covid-19 pandemic. Hong Kong’s property value has been under pressure, burdened by concerns that it may take time to credit eligible developers to complete unfinished projects to bear fruit. With the real estate sector accounting for at least 20 percent of China’s gross domestic product, its stabilization will continue to be an important factor in the country’s economic health in the second half of the year, Commerzbank said. Among other things, Country Garden fell by 2.3 percent. Car shares have plunged amid concerns that new coronavirus outbreaks in China will weigh on demand. BYD was down 1.8 percent and SAIC Motor was down 0.7 percent. In Seoul, they were burdened by the sale of two heavyweight indices: Samsung Electronics (-1.6%) and SK Hynix (-1.0%). Traders talked about profit taking. Shares of Apple’s supplier LG Innotek fell 4.8 percent. Apple plans to slow hiring in some areas in the face of a possible economic slowdown in the coming year.
+++++ COMPANY REPORTS FROM 13.30 +++++
continues the expansion of the methylenediphenyl isocyanate (MDI) production facility at the Verbund plant in Geismar, Louisiana, with one final stretch. In the third phase of a multi-stage capacity expansion, BASF will increase production capacity to 600,000 tons / year by 2025 to support the continued growth of MDI’s customers in North America, the chemical company announced. The company began its expansion in 2018 as a phased project covering a total of three investment phases. The investment for the target part of the expansion in 2022-2025 is approximately USD 780 million.
(MORE TO FOLLOW) Dow Jones Newswires
July 19, 2022 12:39 PM CET (4:39 PM GMT)