DOW JONES–After the rally at the beginning of the week, the European stock markets are again trading with small premiums on Tuesday. The DAX gained 0.3 percent to 20,280 points, the Euro-Stoxx-50 rose by 0.5 percent to 5,013 points. The technology sector rose by a further 0.6 percent after the increase the day before. The AI hype continues here, with news from the Consumer Electronics Show (CES) technology trade fair in Las Vegas. The retail sector rose 1.0 percent after British retailer Next raised its outlook following strong Christmas sales.
EU inflation as expected
EU consumer prices, which were as expected, provided little impetus in the morning. As of December, the inflation rate in the euro area rose to 2.4 percent – as expected by the majority of economists. The fact that inflation has climbed to this level is primarily due to rising energy and food prices. The core inflation rate excluding energy, food and beverages remained at 2.7 percent. Commerzbank economist Vincent Stamer believes that an “undershooting”, a fall in inflation below the ECB’s target of 2 percent, is unlikely in the first half of 2025. Commerzbank expects the ECB to raise interest rates four more times this year.
AI bull market at Kion – Suss weak
Kion (+8%), together with Accenture and Nvidia Software, has developed an improvement for supply chains with AI-supported robots and “digital twins” and presented it at the CES. The three companies want to use Nvidia’s highly developed AI and simulation technologies to help corporate customers “determine the ideal layout for new warehouses to be set up and continuously improve existing warehouses.”
Following a sell recommendation from UBS, Suss Microtec (-10.8%) in the technology sector is noticeably weak. The analysts justify their sell vote on the stock, which is likely to be weighed down by short-term demand dynamics and the China risk.
Next raises its outlook after strong Christmas business
After a better-than-expected interim report, Next rose by 3.8 percent on the London Stock Exchange. Adjusted sales rose by 5.7 percent in the fourth quarter. According to RBC, this is above the company’s planning of 3.5 percent and the consensus expectation of around 4 percent. The online business has developed strongly. Among peers, JD Sports is up 5.5 percent and H&M is up 2.5 percent.
Shares in major Tencent shareholder Prosus fell 1.3 percent after the US added Chinese company Tencent to its list of companies allegedly linked to the Chinese military, writes AlphaValue analyst Saima Hussain. This time it is not a Chinese crackdown that caused the technology company’s collapse, but the USA. “This is the first time that Tencent has faced such direct scrutiny. Although this does not impose legal sanctions, it increases reputational risk and fears of possible economic disruption,” the analyst added.
Sodexo loses 8.2 percent. Organic growth over the year was good at 4.6 percent, but was below the consensus expectation of 5.3 percent, said Bernstein.
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Stock index last +/-% absolute +/-% YTD
Euro Stoxx 50 5,013.15 +0.5% 26.51 +2.4%
Stoxx-50 4,370.81 +0.1% 5.22 +1.4%
DAX 20,279.59 +0.3% 63.40 +1.9%
MDAX 25,844.74 +0.6% 144.97 +1.0%
TecDAX 3,510.34 +0.8% 27.98 +2.7%
SDAX 14,039.06 +0.1% 15.01 +2.4%
FTSE 8,231.57 -0.2% -18.09 +1.6%
CAC 7,494.11 +0.7% 48.42 +1.5%
Bond market last absolute +/- YTD
German ten-year return 2.46 +0.02 +0.10
US ten-year yield 4.64 +0.01 +0.07
FOREX last +/- % Tue, 8:15 Mon, 17:01 % YTD
EUR/USD 1.0406 +0.2% 1.0408 1.0391 +0.5%
EUR/JPY 164.20 +0.3% 164.16 163.66 +0.8%
EUR/CHF 0.9433 +0.3% 0.9398 0.9403 +0.5%
EUR/GBP 0.8301 +0.0% 0.8295 0.8309 +0.3%
USD/JPY 157.78 +0.1% 157.68 157.51 +0.3%
GBP/USD 1.2537 +0.1% 1.2549 1.2506 +0.2%
USD/CNH (Offshore) 7.3387 -0.1% 7.3386 7.3528 +0.1%
Bitcoin
BTC/USD 101,120.65 -0.9% 101,861.95 102,114.15 +6.8%
CRUDE OIL most recently VT-Settlem. +/-% +/- USD% YTD
WTI/Nymex 73.91 73.56 +0.5% +0.35 +3.1%
Brent/ICE 76.80 76.30 +0.7% +0.50 +2.6%
GAS VT Settlem. +/- EUR
Dutch TTF 46.37 47.21 -1.8% -0.84 -6.6%
METALS last day previous +/- % +/- USD % YTD
Gold (spot) 2,645.45 2,636.20 +0.4% +9.25 +0.8%
Silver (spot) 30.16 29.96 +0.7% +0.20 +4.5%
Platinum (spot) 947.83 932.25 +1.7% +15.58 +4.5%
Copper future 4.17 4.14 +0.7% +0.03 +4.0%
YTD based on the previous day’s closing level
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(END) Dow Jones Newswires
January 07, 2025 06:45 ET (11:45 GMT)