The midday market overview, compiled by Dow Jones Newswires:
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+++++ STOCK AND BOND MARKETS (12:51 p.m.) +++++
INDEX reading +-% +-% YTD
E-Mini Future S&P 500 3,994.75 +0.1% +3.5%
E-Mini Nasdaq-100 Future 12,195.75 +0.2% +10.7%
Euro Stoxx 50 4,284.50 +0.1% +12.9%
Stoxx 50 3,898.61 +0.0% +6.8%
DAX 15,597.24 +0.2% +12.0%
FTSE 7,912.77 -0.1% +6.3%
CAC 7,330.25 -0.1% +13.2%
Nikkei-225 28,444.19 +0.5% +9.0%
EUREX level +/- points
Bund future 131.39 +0.26
+++++ COMMODITY MARKETS +++++
CRUDE OIL last VT settlem. +/- % +/- USD % YTD
WTI/Nymex 77.45 77.58 -0.2% -0.13 -3.8%
Brent/ICE 83.33 83.29 +0.0% +0.04 -2.4%
GAS VT Settlem. +/- EUR
Dutch TTF 43.90 43.37 +1.2% +0.53 -43.0%
METALS last day before +/- % +/- USD % YTD
Gold (Spot) 1,815.90 1,813.50 +0.1% +2.40 -0.4%
Silver (Spot) 20.15 20.13 +0.1% +0.03 -15.9%
Platinum (Spot) 948.53 937.50 +1.2% +11.03 -11.2%
Copper Future 4.01 3.99 +0.5% +0.02 +5.1%
YTD relative to previous day’s close
After the clear previous day’s sales, oil prices have changed little. Powell’s comments had raised concerns that a tighter-than-expected US interest rate policy could stall the economy and slow demand for oil. According to SPI Asset Management, the market is “between a more robust outlook for China and a hawkish Fed”.
+++++ OUTLOOK US EQUITIES +++++
Wall Street is expected to stabilize after the clear previous day’s losses in the middle of the week. However, the statements by US Federal Reserve Chairman Jerome Powell from the previous day are likely to continue to have an impact. The latter had indicated his willingness to make major rate hikes. Should the body of data suggest that faster tightening is warranted, the Fed would be poised to accelerate the pace of rate hikes. “The sell-off in global stock markets continues as investors were spooked by the realization that the Fed’s work in trying to tame US inflation is far from over,” said Susannah Streeter, Head of Money and Markets at Hargreaves Lansdown. Company figures again come from the second and third row. Crowdstrike is clearly on the up before the market. The cybersecurity company has reported better-than-expected quarterly earnings. In addition, the outlook for the current quarter was better than previously expected by analysts.
+++++ OUTLOOK COMPANY +++++
The following companies will publish business figures later in the day:
18:00 FR/Vivendi SE, full year result
+++++ ECONOMIC OUTLOOK ++++++
-U.S
14:15 ADP February jobs report
employment private sector
FORECAST: +205,000 digits
previously: +106,000 digits
14:30 trade balance January
FORECAST: -$68.7 billion
previously: -$67.4 billion
16:30 State Energy Crude Oil Inventory Data (Week).
Information Administration (EIA)
20:00 US/Fed, Beige Book
+++++ FINANCIAL MARKETS EUROPE +++++
Slightly firmer – The European stock markets quickly recovered from the early pullback on Wednesday afternoon and are trading in positive territory. There is no “Powell shock” in the DAX, as the Commerzbank experts describe Wall Street’s reaction to statements by US Federal Reserve President Jerome Powell. This continues the current relative strength of the European stock markets. The reason may be that many investors in Europe are still underweight, so that the shares benefited from shifts here. The reporting season once again provided the impetus for the individual stocks. ADP and JOLTS payrolls are due this afternoon ahead of Friday’s US payrolls report. Continental has convinced; the stocks took the lead in the DAX with a plus of 5.4 percent. Analysts at Citi call the outlook for 2023 encouraging, especially as it implies a 30 percent upside potential for consensus estimates for the automotive division, which is central to Continental’s investment story. Bayer increase by 1.7 percent. Traders refer to a new study, according to which glyphosate is not responsible for an increased risk of cancer when using weed killers. Other components may be responsible for the risk of cancer, according to the study, which was published in Environmental and Molecular Mutagenesis. Fuchs Pertrolub shares are down 5.0 percent. The EBIT margin is likely to have seen its low point in the final quarter of 2022, Stifel comments on the business figures. Brenntag increase by 0.2 percent. Sales were above expectations, but operating EBITDA and net income were below. For the current year, the company expects an operating profit decline. Dividend increase and share buyback program have a supporting effect.
+++++ CURRENCIES +++++
FOREX last +/- % Wed 7:35am Tue 5:04pm % YTD
EUR/USD 1.0538 -0.1% 1.0536 1.0592 -1.6%
EUR/JPY 144.65 -0.0% 145.06 144.81 +3.1%
EUR/CHF 0.9938 +0.0% 0.9938 0.9953 +0.4%
EUR/GBP 0.8903 -0.2% 0.8909 0.8915 +0.6%
USD/JPY 137.27 +0.1% 137.68 136.73 +4.7%
GBP/USD 1.1836 +0.0% 1.1825 1.1882 -2.2%
USD/CNH (Offshore) 6.9745 -0.3% 6.9770 6.9747 +0.7%
Bitcoin
BTC/USD 22,065.48 -0.2% 22,044.95 22,364.14 +32.9%
YTD relative to previous day’s close
The dollar is still slightly expanding its gains after yesterday’s strong gain. The dollar index is up 0.1 percent. In December, the consensus within the Open Market Committee saw the interest rate peak at 5 to 5.25 percent, the market is currently pricing in 5.75 percent, according to Commerzbank analyst Esther Reichelt. However, Powell has once again confirmed that the February job market report (Friday) and the inflation data (next week Tuesday) in particular could still have a significant impact on the interest rate path. The US economists also do not rule out an interest rate high of 6 percent if the upcoming data should be correspondingly strong, the currency expert continues. The immediate interest rate outlook seems to still offer potential for the dollar.
+++++ EAST ASIA FINANCIAL MARKETS +++++
Weak – Fed Chair Jerome Powell’s hawkish appearance before the Senate Banking Committee on Tuesday sent sell-side sentiment on the East Asian and Sydney stock markets on Wednesday, as it did on Wall Street earlier. Powell had not ruled out that the next interest rate hikes could be more aggressive in view of the recent often robust economic data combined with persistently high inflation. The final interest rate level could be higher than previously thought, he also said. Tokyo was an exception: the Nikkei 225 rose by half a percent to 28,444 points despite the unfavorable interest rate environment. The significantly firmer dollar as a result of interest rate speculation provided support. It last traded at 137.65 yen, almost 2 yen higher than the same time last day. With the yen falling to a three-month low, export prospects for Japanese companies are improving. In addition to technology stocks, stocks from the oil sector were on the losers’ lists after oil prices had fallen significantly the previous day – also in response to Fed Chair Powell’s interest rate signal. Higher interest rates are likely to slow economic growth and thus oil demand.
+++++ CREDIT +++++
The risk premiums against the default of European government and corporate bonds are only on a slight expansion course on Wednesday. The hawkish statements by US Federal Reserve Chairman Powell are depressing sentiment somewhat, but market participants do not believe they will influence the future course of the ECB. Europe’s CDS premiums are thus still slightly below the level of the previous week.
+++++ COMPANY REPORTS SINCE 7.30 AM +++++
ADIDAS
surprisingly wants to pay a dividend for the past financial year – although the abrupt end of the lucrative Yeezy partnership with rapper and designer Kanye West led to lost sales and a slump in profits last year and a profit warning for the current year. The dividend for 2022 should be EUR 0.70 per share, after EUR 3.30 per share a year earlier. The forecast for 2023 issued in February was confirmed. Adidas has also extended CFO Harm Ohlmeyer’s contract by a further three years until early 2028.
ADIDAS
(MORE TO FOLLOW) Dow Jones Newswires
March 08, 2023 06:55 ET (11:55 GMT)