FRANKFURT (Dow Jones)–The Pentecost premiere of stock trading in Germany is proving to be friendly. At midday, the DAX was 1 percent higher at 14,601 points, the Euro-Stoxx-50 even gained 1.3 percent to 3,831.
Brsians speak of economic optimism. In China, the Caixin purchasing managers’ index for the service sector rose significantly in May. Although it is still clearly in the area that indicates contraction, it still fits seamlessly into the row of the other already known and consistently increased purchasing managers’ indices. The background to this is the easing of the lockdown measures in China.
In London, business was up 1.1 percent on Thursday and Friday due to the Queen’s 70th jubilee. The fact that Prime Minister Johnson has to face a no-confidence vote within his party that evening and thus runs the risk of losing the office of Prime Minister seems to leave the actors cold. At the same time, the pound is appreciably strengthening against both the dollar and the euro.
As expected, business is quiet, the appointment calendar is almost empty. Many market participants in Germany prefer to use the Pentecost festival for an extended weekend rather than trading shares on a Whit Monday in Germany for the first time. The stock exchanges in Austria, Switzerland, Denmark, Norway and Sweden are also closed because of the Pentecost festival.
ECB is likely to announce the end of negative interest rates
Interest rates remain the focus, all the more so since the ECB is likely to announce interest rate hikes from July on Thursday. Most observers assume that the ECB will raise interest rates by 25 basis points in July and September. Recently, however, there have also been voices from ECB circles that would prefer a more aggressive approach. The end of the negative deposit rate is also likely to be announced for September.
The recent downward trend on the bond market, which has already pushed up market interest rates significantly, has stopped for the time being.
After the strong boost on Friday, prices on the oil market continued to rise a little, albeit only slightly by 0.5 percent. Saudi Aramco, the world’s largest oil producer, has significantly increased its sales price for the East Asia region. According to observers, the expectation that demand will continue to be robust should be behind this. This fuels interest rate hike speculation even more.
Aircraft stocks backed by Jefferies
Aircraft stocks are wanted. In the DAX, Airbus (+2.3%) and MTU (+2.2%) are growing at an above-average rate, in Paris Safran is up 2.2 percent and in London BAe Systems is up 1.3 percent. Jefferies analysts have been positive on the sector. Regarding Airbus, while there is still some initial pressure from supply chain issues, these challenges should not prevent Airbus from increasing A320 deliveries to 75 per month by 2025. There will also be share buybacks starting next year. Jefferies therefore continues to see Airbus as the first choice in the European aerospace and defense sector.
The food suppliers Just Eat (+14%), Deliveroo (+5.1%) and Delivery Hero (+8%) are remarkably firmly established in the market.
Numerous index changes in the DAX family
The changes in the composition of the index in the DAX family were largely as expected. The purchase of index funds for concrete implementation from June 17th to 20th could ensure stronger price movements for the shares concerned.
Beiersdorf (+0.5%) returns to the DAX, but Delivery Hero has to give way. In addition to Delivery Hero, Encavis (+0.6%) will be included in the MDAX, followed by Beiersdorf Hypoport (+0.9%). Jungheinrich (+1.4%) overtook Hypoport on the last straight in the relegation battle and are therefore still in the MDAX. However, this is only a reprieve for the time being, as the new ranking puts them on a relegation zone for the next regular review in September.
In addition to Hypoport, Hensoldt (-0.2%) and PNE (-1.3%) are included in the SDAX, but Encavis is replaced by LPKF (+0.8%) and SGL (-0.4%) leaving the small-cap index.
Stock index last +/-% absolute +/-% YTD
Euro Stoxx 50 3,830.73 +1.2% 47.07 -10.9%
Stoxx 50 3,681.11 +0.9% 34.02 -3.6%
DAX 14,596.88 +0.9% 136.79 -8.1%
MDAX 30,398.40 +0.6% 174.22 -13.5%
TecDAX 3,201.63 +0.8% 24.09 -18.3%
SDAX 13,924.47 +0.8% 110.33 -15.2%
FTSE 7,616.49 +1.1% 83.54 +2.0%
CAC 6,553.10 +1.0% 67.80 -8.4%
Fixed income market last absolute +/- YTD
German ten-year return 1.26 -0.01 +1.44
US 10-year yield 2.95 +0.02 +1.44
FOREX last +/- % Mon, 8:36 Fri, 17:01 % YTD
EUR/USD 1.0728 +0.1% 1.0729 1.0721 -5.7%
EUR/JPY 140.14 -0.2% 140.18 140.14 +7.1%
EUR/CHF 1.0317 -0.0% 1.0322 1.0317 -0.6%
EUR/GBP 0.8543 -0.5% 0.8566 0.8562 +1.7%
USD/JPY 130.64 -0.2% 130.65 130.74 +13.5%
GBP/USD 1.2558 +0.5% 1.2523 1.2521 -7.2%
USD/CNH (Offshore) 6.6392 -0.1% 6.6588 6.6484 +4.5%
Bitcoin
BTC/USD 31,382.21 +4.8% 31,226.07 29,419.07 -32.1%
ROHOEL last VT-Settl. +/- % +/- USD % YTD
WTI/Nymex 119.54 118.87 +0.6% 0.67 +64.3%
Brent/ICE 120.36 119.72 +0.5% 0.64 +59.5%
METALS last day before +/- % +/- USD % YTD
Gold (Spot) 1,855.14 1,851.15 +0.2% +3.99 +1.4%
Silver (Spot) 22.37 21.93 +2.0% +0.44 -4.1%
Platinum (Spot) 1,033.50 1,012.99 +2.0% +20.51 +6.5%
Copper Future 4.42 4.48 -1.3% -0.06 -0.8%
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(END) Dow Jones Newswires
June 06, 2022 07:16 ET (11:16 GMT)
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