The evening market overview compiled by Dow Jones Newswires:
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+++++ STOCK MARKETS (6.15 p.m.) +++++
INDEX reading +-% +-% YTD*
EuroStoxx50 3,517.25 -1.25% -18.17%
Stoxx50 3,501.61 -1.38% -8.30%
DAX 12,834.96 -0.97% -19.20%
FTSE 7,288.90 -0.99% -0.31%
CAC 6,125.10 -1.37% -14.37%
DJIA 31,767.79 -0.07% -12.58%
S&P 500 3,988.63 +0.06% -16.31%
Nasdaq Comp. 11,906.96 +0.20% -23.89%
Nasdaq-100 12,371.52 +0.23% -24.19%
Nikkei-225 28,091.53 -0.37% -2.43%
EUREX Stand + ticks
Bund future 148.05 -42
*on the previous day
+++++ COMMODITY MARKETS +++++
ROHOEL last VT-Settlem. +/- % +/- USD % YTD
WTI/Nymex 91.08 91.64 -0.6% -0.56 +28.3%
Brent/ICE 96.80 99.31 -2.5% -2.51 +30.0%
GAS VT Settlem. +/- EUR
Dutch TTF 239.99 265.33 -9.5% -25.34 +344.0%
METALS last day before +/- % +/- USD % YTD
Gold (Spot) 1,719.67 1,723.83 -0.2% -4.16 -6.0%
Silver (Spot) 18.13 18.53 -2.1% -0.39 -22.2%
Platinum (Spot) 851.40 851.00 +0.0% +0.40 -12.3%
Copper Future 3.51 3.55 -0.9% -0.03 -20.7%
Oil prices continue their recent downward trend, albeit at a somewhat slower pace. Brent and WTI grades are down by up to 2.5 percent. The decline in weekly US inventory data was significantly larger than expected. Gasoline inventories even fell to their lowest level in 9 months. A possible new nuclear agreement between the USA and Iran, which would then bring additional Iranian oil onto the market, will also continue to have a negative effect. In addition, there is still uncertainty as to whether OPEC+ is considering possible oil production cuts. The next OPEC+ meeting on Monday could bring certainty.
The price of gold is suffering from interest rate hikes around the world and from the generally firm dollar. The troy ounce lost 0.2 percent.
+++++ FINANCIAL MARKET USA +++++
Holding up well – A clearer recovery attempt in the meantime could not hold its own, however, because concerns about recession and interest rate increases persist. The market is struggling for direction as Friday’s US jobs data could potentially prompt a turnaround in investor sentiment. A preview of the news was provided by the ADP August jobs report on Wednesday, which came in significantly weaker than expected. This is of little support, however, as investors don’t expect it to slow the Fed’s hawkishness. HP dropped 5.9 percent after the computer and printer maker reported a drop in sales and lowered its outlook. Hewlett-Packard Enterprise (HPE), on the other hand, increased sales and profits in the third fiscal quarter. Shares are up 0.1 percent. Snap is up 9.2 percent. The social network wants to cut 20 percent of the workforce, reports the US technology portal The Verge. Alibaba (+1.9%) and JD.com (+2.9%) shares rose on a report showing the Chinese e-commerce giants are among the first companies to back a key bilateral financial deal Transparency selected for inspection by US auditors. The aim is to prevent delisting on US stock exchanges.
+++++ FINANCIAL MARKETS EUROPE +++++
Weak – The environment remains difficult, investors are holding back. European consumer prices rose 0.5 percent month-on-month in August and were 9.1 percent higher than a year earlier. “This is not good news for the ECB,” said VP Bank: “The European currency watchdogs failed to turn the lever in time. Now they are lagging behind the inflation trend.” There was new bad news about the energy crisis. Because Poland has to buy in the short term due to gas supply contracts that have burst. The influence of the bad speculation at Wien Energie on the reliability of the supply contracts is also not yet certain. And gas has now stopped flowing through the Nord Stream 1 pumping pipeline for at least three days. Utility stocks were still under pressure, their Stoxx industry index lost 2.6 percent. With a plus of 4.5 percent, Unicredit fared much better than the banking sector as a whole in the market. The bank has announced that the ECB has approved the second tranche of its share buyback program launched in 2021.
+++++ CURRENCIES +++++
FOREX last +/- % Wed 8:48am Tue 6:35pm % YTD
EUR/USD 1.0067 +0.5% 1.0017 1.0023 -11.5%
EUR/JPY 139.56 +0.4% 138.64 139.05 +6.6%
EUR/CHF 0.9809 +0.5% 0.9752 1.0262 -5.5%
EUR/GBP 0.8638 +0.5% 0.8581 0.8600 +2.8%
USD/JPY 138.64 -0.1% 138.38 138.72 +20.4%
GBP/USD 1.1653 -0.0% 1.1675 1.1653 -13.9%
USD/CNH (Offshore) 6.8950 -0.4% 6.9020 6.9223 +8.5%
Bitcoin
BTC/USD 20,133.09 -1.5% 20,432.06 20,432.06 -56.5%
The dollar gives back its daily gains. Participants see a pure counter-movement in this. At the moment there is much to be said for the US motto, which is expected to be hawkish monetary policy the fed UBS also refers to the energy crisis in Europe and the gloomy economic trend in China. These developments bolstered what was perceived as a safe-haven dollar.
+++++ EAST ASIA FINANCIAL MARKETS +++++
Inconsistent – The negative specifications of the US stock exchanges only weighed more heavily at the beginning. On the loser side was the Shanghai Stock Exchange, where the Composite Index fell 0.8 percent. Recent pandemic-related lockdowns and weak purchasing managers’ indices raised fears that the Chinese economy could slip into recession. The Hang Seng index turned positive later, trending 0.1 percent higher in late trade. Among the individual stocks, BYD fell by 8.4 percent. Berkshire Hathaway, the holding company of legendary investor Warren Buffett, has sold part of its BYD block of shares. That weighed on other auto stocks as well. Among other things, Guangzhou Automobile Group lost 3.8 percent. In Tokyo, the Nikkei 225 index closed 0.4 percent down, but recovered significantly from its daily low. Contrary to expectations, Japanese industrial production rose in July. Above all, the actions of the Federal Reserve were cited as the reason for the price losses of Japanese banks. UFJ Financial fell 1.0 percent, while Aozora Bank and Sumitomo Mitsui Financial Group each fell 0.5 percent. Seoul’s Kospi also more than recouped early losses, closing 0.9 percent higher. The planned easing of pandemic-related entry regulations again gave a boost to stocks in the travel and tourism sector.
+++++ COMPANY REPORTS SINCE 1.30 PM +++++
Merck KGaA and Guardant Health
strengthen cooperation on cancer drugs. The collaboration will focus on the development of therapies for key cancer indications with high unmet needs. The German pharmaceutical company will work closely with Guardant Health’s data scientists on a number of therapy development initiatives. The aim is to use genomic and clinical information accessible via the GuardantINFORM Real World Evidence (RWE) platform.
Aareal Bank
gets six more board members. As the SDAX company announced, the shareholders at the virtual general meeting elected Henning Giesecke, Denis Hall, Barbara Knoflach, Hans-Hermann Lotter, Marika Lulay and José Sevilla Álvarez to the supervisory board. According to the announcement, the chairman of the supervisory board, Hermann Wagner, and Sylvia Seignette will remain on the supervisory board.
Eurowings pilots
support trade union VC in collective bargaining. In a ballot with a turnout of almost 90 percent, 97.7 percent of the union members voted to support the collective bargaining commission of the pilots’ union, as the VC announced. The required quorum was thus clearly exceeded.
GM, SAIC
present convertible electric car in China in September. The Mini EV is a small two-seater relatively inexpensive at $5,000. The convertible, basically a new version of the Mini EV, is said to be priced closer to $6,000. The new Mini EV probably won’t be sold in the US. Nor is it based on GM’s Ultium electric car platform in the US.
Walmart
strengthens its beef business and acquires a stake in a proposed processing plant in Nebraska, USA. The aim is to increase the meat supply and the processing capacity in the beef industry.
Tencent and Netease
invest in foreign video game studios. Tencent Holdings, the world’s largest video game company, has acquired a 16.25 percent stake in Tokyo-based Fromsoftware Inc., developer of the popular action role-playing game Elden Ring, the Japanese studio’s parent company Kadokawa Corp said. With. And Netease has acquired Paris-based Quantic Dream SA, the studio behind adventure games Heavy Rain and Detroit: Become Human.
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DJG/raz
(END) Dow Jones Newswires
August 31, 2022 12:16 PM ET (16:16 GMT)