By Herbert Rude
FRANKFURT–Dow Jones)–The European stock markets are on the up on Tuesday afternoon. The DAX increased by 0.8 percent to 13,286 points. The Euro Stoxx 50 gains 0.8 percent to 3,566 points. According to dealers, the mood is supported by the relaxation of the Chinese corona rules: the government now only wants to quarantine travelers for ten days instead of three weeks. “The market is counting on an upswing in China, which will then also support the German economy,” said one market participant.
As already observed on the previous day, the willingness to sell can be seen above the mark of 13,300 points. This means that the swinging stock market trend of the last few days could continue. “Bulls and Bren continue to deliver a bitter tug of war,” comments QC Partners on current events. The back and forth reflects the environment. Although the valuations are favorable, the economic prospects are anything but rosy. The main topics continue to be inflation, developments on the bond markets, the risk of a Russian gas supply freeze and the actions of the central banks to curb inflation.
ECB President Christine Lagarde meanwhile confirmed the monetary policy stance in Sintra: “In line with our gradual approach, we announced that we would raise our three key interest rates by 25 basis points at our next meeting on July 21,” Lagarde said, adding: “We… but have also announced that we are likely to raise interest rates again in September and that if the medium-term inflation outlook is unchanged or deteriorating, we will consider a larger hike to be appropriate.”
However, the ECB President also said that while there had been signs of inflation expectations rising above 2% in recent months, long-term inflation expectations remained around 2% on a range of measures.
l shares and Basic Resources ahead
China hope is fueling speculation about stronger demand for commodities. The index of oil and gas stocks is therefore clearly at the top of the European Stoxx sector indices with a plus of 2.6 percent, followed by the index of commodity-related Basic Resources, which rises by 1.5 percent. But the indices for car titles and insurance stocks are also growing at an above-average rate of up to 1.5 percent.
In the DAX, Porsche rose by 3.7 percent, MTU by 3.2 percent and Munich Re by 2.1 percent. On the other hand, Symrise is down 1.2 percent and SAP is down 0.9 percent. The Stoxx industry index for technology stocks is also slightly in the red with yields rising again.
Siemens purchase from Brightly not a course driver
After the takeover of Brightly Software in the USA by Siemens for almost 1.6 billion dollars, the share increased by 0.9 percent. With this, Siemens complements the digitization and software know-how in the field of building technology. RBC analysts speak of a logical step to strengthen the software sector, particularly the software-as-a-service (SaaS) business. However, the impact on profit is small.
Adidas and Puma lose up to 0.6 percent. Competitor Nike presented quarterly figures late Monday, which were characterized by increased inventories and bottlenecks in the supply chain.
Philips tend 1.5 percent lighter. Dealers see no relief in an interim report on the group’s problematic ventilators. Nevertheless, he speaks of the “encouraging” results of an independent investigation. The problem with the decomposing foam, which is potentially pathogenic, has arisen almost exclusively with the use of unauthorized cleaning products. As ING notes, Philips does not address the accusation that it acted too late in the update. The recall campaign is also likely to drag on for a long time.
In Stockholm, SAS are up 6.2 percent. Shares in the ailing Scandinavian airline are benefiting from the news that the Norwegian government has agreed in principle to forego repaying aid in exchange for shares in the company.
Hugo Boss and K+S very firm with analyst recommendations
In the MDAX, Hugo Boss rose by 2.9 percent after the Jefferies analysts upgraded the share to “buy”. With an increase of 6 percent, K+S benefited from a positive assessment by DZ Bank.
Friedrich Vorwerk Group make a leap of almost 9 percent. The company is realizing part of the connection line for the LNG terminal in Wilhelmshaven. The order has a volume in the mid double-digit million range. Bet-at-home gains a good 6 percent, although the online betting provider lowered its forecasts after losing a legal battle in Switzerland.
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Stock index last +/-% absolute +/-% YTD
Euro Stoxx 50 3,567.46 +0.8% 28.58 -17.0%
Stoxx 50 3,519.29 +0.6% 21.03 -7.8%
DAX 13,287.69 +0.8% 101.62 -16.4%
MDAX 27,278.47 +0.5% 125.03 -22.3%
TecDAX 2,979.68 +0.7% 21.15 -24.0%
SDAX 12,436.26 +0.8% 92.98 -24.2%
FTSE 7,336.13 +1.1% 77.81 -1.7%
CAC 6,118.07 +1.2% 70.76 -14.5%
Fixed income market last absolute +/- YTD
German ten-year return 1.64 +0.09 +1.82
US 10-year yield 3.22 +0.02 +1.71
FOREX last +/- % Tue, 8:18 Mon, 18:40 % YTD
EUR/USD 1.0535 -0.5% 1.0580 1.0597 -7.3%
EUR/JPY 143.44 +0.0% 143.37 143.40 +9.6%
EUR/CHF 1.0085 -0.3% 1.0114 1.0126 -2.8%
EUR/GBP 0.8624 -0.0% 0.8623 0.8626 +2.6%
USD/JPY 136.15 +0.5% 135.52 135.32 +18.3%
GBP/USD 1.2219 -0.4% 1.2271 1.2284 -9.7%
USD/CNH (Offshore) 6.7097 +0.3% 6.6859 6.6895 +5.6%
Bitcoin
BTC/USD 20,969.46 +0.9% 20,820.08 20,746.62 -54.6%
ROHOEL last VT-Settl. +/- % +/- USD % YTD
WTI/Nymex 110.76 109.57 +1.1% 1.19 +53.5%
Brent/ICE 117.08 115.09 +1.7% 1.99 +55.2%
GAS VT close +/- EUR
Dutch TTF 128.65 129.69 -0.6% -0.81 +52.0%
METALS last day before +/- % +/- USD % YTD
Gold (Spot) 1,825.90 1,822.60 +0.2% +3.30 -0.2%
Silver (Spot) 21.21 21.17 +0.2% +0.04 -9.0%
Platinum (Spot) 925.39 911.55 +1.5% +13.84 -4.7%
Copper Future 3.79 3.76 +0.9% +0.03 -14.6%
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(END) Dow Jones Newswires
June 28, 2022 09:24 ET (13:24 GMT)
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