The midday market overview, compiled by Dow Jones Newswires:
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+++++ STOCK AND BOND MARKETS (13:22) +++++
INDEX reading +-% +-% YTD
E-Mini Future S&P 500 4,144.75 +0.1% -12.7%
E-Mini Future Nasdaq-100 12,927.00 +0.1% -20.8%
Euro Stoxx 50 3,652.51 -0.2% -15.0%
Stoxx 50 3,641.40 -0.4% -4.6%
DAX 13,213.42 -0.1% -16.8%
FTSE 7,487.35 -0.6% +2.2%
CAC 6,362.72 -0.3% -11.1%
Nikkei-225 28,452.75 -1.2% -1.2%
EUREX level +/- points
Bund future 151.04 -0.32
+++++ COMMODITY MARKETS +++++
RAW HOEL last VT close +/- % +/- USD % YTD
WTI/Nymex 91.87 90.36 +1.7% +1.51 +29.5%
Brent/ICE 97.79 96.69 +1.1% +1.10 +31.3%
GAS VT Settlem. +/- EUR
Dutch TTF 270.20 276.75 -2.4% -6.55 +324.9%
METALS last day before +/- % +/- USD % YTD
Gold (Spot) 1,737.34 1,736.31 +0.1% +1.03 -5.0%
Silver (Spot) 18.99 19.04 -0.3% -0.05 -18.5%
Platinum (Spot) 875.90 879.33 -0.4% -3.43 -9.8%
Copper Future 3.66 3.65 +0.2% +0.01 -17.4%
YTD at the close of the day
The European gas price is coming back a little after the strong increase on the previous day.
+++++ OUTLOOK US EQUITIES +++++
Claimed – After the stronger losses of the past few trading days, it looks like a little changed start. After the 17 percent summer rally and hitting a three-month high on Aug. 16, the S&P 500 is back down about 4 percent. A “poison cocktail” of fears of inflation, the threat of recession and further energy shortages have made investors risk-averse again, says Richard Hunter, market expert at Interactive Investors. According to signals from US Federal Reserve circles, speculation is now that the monetary watchdogs will be unperturbed by signs that inflation may have peaked when the next interest rate decision is made and will continue their aggressive rate hike course to contain inflation. In keeping with this, the ten-year yield has returned to over 3 percent after a more significant drop to around 2.5 percent. In addition, investors are worried about a recession in Europe as a result of the gas supply crisis there. Various purchasing manager data from the USA could provide impetus in the course of trading. In the euro zone their counterparts turned out to be mixed overall. In terms of individual values, losses are on the cards at Zoom Video Communications after the video communications provider lowered its forecast. The second-quarter results, meanwhile, contained ups and downs. The stock on Nasdaq.com lost a good 11 percent before the market.
+++++ OUTLOOK COMPANY +++++
No important dates announced.
+++++ ECONOMIC OUTLOOK ++++++
– U.S
15:45 Purchasing Managers’ Index/PMI Manufacturing
(1st publication) August
FORECAST: 51.9
previously: 52.2
Purchasing Managers Index/PMI Service
(1st publication) August
FORECAST: 49.0
previously: 47.3
16:00 July new home sales
FORECAST: -2.7% m/m
before: -8.1% m/m
– EU
16:00 Eurozone Consumer Confidence Index
(Preliminary estimate) August
FORECAST: -28.0
before: -27.0
– U.S
22:30 crude oil inventory data (week) of the private
American Petroleum Institute (API)
+++++ FINANCIAL MARKETS EUROPE +++++
Claimed – After the sell-off at the start of the week, the stock markets are sounding out a viable bottom. Hardly any impetus came from the purchasing manager indices in the euro zone, they were mixed overall. Martin Moryson, chief economist for Europe at DWS, sees a ray of hope in German industry, where the overall assessment has improved slightly and, at 49.8, is close to the “normal 50”. Incoming orders also improved slightly. According to a very negative study by Citigroup, traders see pressure on the shares of container shipping companies, but also other logistics companies. The analysts see an even greater slowdown in the global economy than previously priced in. Moeller-Maersk (-2.5%) and Hapag-Lloyd (-5%) were downgraded to sell. TAG Immobilien is up 4 percent according to the half-year figures. The confirmed outlook for the year and better-than-expected operating figures provided confidence. Also after the presentation of half-yearly figures, Dermapharm are 3.8 percent cheaper.
+++++ CURRENCIES +++++
last +/- % Tue, 7:45 a.m. Mon, 6:07 p.m. % YTD
EUR/USD 0.9929 -0.1% 0.9921 0.9937 -12.7%
EUR/JPY 136.37 -0.3% 136.18 136.70 +4.2%
EUR/CHF 0.9590 +0.0% 0.9571 1.0361 -7.6%
EUR/GBP 0.8430 -0.3% 0.8441 0.8452 +0.3%
USD/JPY 137.35 -0.1% 137.23 137.55 +19.3%
GBP/USD 1.1779 +0.1% 1.1753 1.1756 -13.0%
USD/CNH (Offshore) 6.8619 -0.1% 6.8691 6.8730 +8.0%
Bitcoin
BTC/USD 21,422.01 +1.6% 21,025.97 21,389.61 -53.7%
YTD at the close of the day
The dollar rises to a fresh 20-year high against the euro. Francesco Pesole, a currency analyst at ING, said the market is expecting Fed Chair Jerome Powell to announce further rate hikes at Friday’s annual international central bankers’ meeting in Jackson Hole. In addition, there is demand for safe havens such as the dollar, because risk aversion is currently dominating. At the same time, further increases in gas prices worsened the outlook for countries outside the US, especially in the euro zone, says Pesole.
+++++ EAST ASIA FINANCIAL MARKETS +++++
Weak – Traders spoke of an unfavorable combination of economic and interest rate fears – driven by inflation that was far too high. The assumption that the US Federal Reserve will proceed undeterred on the path of monetary tightening is becoming increasingly clear. Other central banks are also continuing to tighten interest rates. The South Korean central bank is likely to raise interest rates by a further 25 basis points on Thursday. The fact that China, after two interest rate cuts within a week, has now also asked the state banks to support the economy by granting more loans, caused further uncertainty. In Seoul, investors also expressed concern about geopolitical tensions amid large-scale maneuvers between the US military and local forces. It was said that one did not know how the north would react. The price of the aviation supplier Hanwha Aerospace rose by 3 percent – boosted by a large order.
+++++ CREDIT +++++
The risk premiums against the default of European government and corporate bonds (CDS) narrow again slightly after the significant increase on the previous day. The rise was triggered by global risk aversion due to prevailing recession concerns.
+++++ COMPANY REPORTS SINCE 7.30 AM +++++
INFINEON
secures further access to corresponding SiC wafers in order to be able to cover the expected strong growth in the business with power semiconductors based on silicon carbide (SiC). A multi-year supply contract was concluded with the US company II-VI Incorporated.
DEUTZ
In the future, Petra Mayer will be responsible for production on the Executive Board. The supervisory board appointed the manager, who previously worked at the auto supplier ZF Friedrichshafen, from November.
DERMAPHARM
In view of the sometimes “enormous price increases” in the supply of energy and raw materials, the adjusted group EBITDA rose by 9 percent to 149 million euros in the first half of the year, while revenues climbed by 10 percent to 471 million euros.
DOUGLAS
earned more operationally, improved margins and increased sales in the fiscal third quarter. The bottom line is that the perfumery chain was able to reduce the loss thanks to cost-cutting measures and portfolio optimization.
FIELMAN
invests to expand production and logistics capacities in Rathenow in Brandenburg and in Chomutov in the Czech Republic. Fielmann wants to spend more than 65 million euros on a new location with eyewear production and a fulfillment center. In addition, 35 million euros are to flow into the largest production and logistics site in Rathenow.
DAY REAL ESTATE
earned more from operations in the first half of the year. Full-year earnings guidance was confirmed.
ANDRITZ
strengthens itself with an acquisition in Italy. The Austrian machine and plant manufacturer takes over the Schuler subsidiary of the Italian Sovema Group in order to become a system provider in battery cell production. Antritz did not provide information on the purchase price.
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DJG/gos
(END) Dow Jones Newswires
August 23, 2022 07:25 ET (11:25 GMT)