The evening market overview compiled by Dow Jones Newswires:
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+++++ HOLIDAY NOTICE +++++
MONDAY: In the USA, the stock exchanges and the bond market remain closed for the “Labor Day” holiday.
+++++ STOCK MARKETS (6:17 p.m.) +++++
INDEX reading +-% +-% YTD*
EuroStoxx50 3,490.01 -1.53% -18.81%
Stoxx50 3,501.14 -0.23% -8.31%
DAX 12,760.78 -2.22% -19.67%
FTSE 7,287.43 +0.09% -1.40%
CAC 6,093.22 -1.20% -14.82%
DJIA 31,318.44 -1.07% -13.81%
S&P 500 3,924.26 -1.07% -17.66%
Nasdaq Comp. 11,630.86 -1.31% -25.66%
Nasdaq-100 12,098.44 -1.44% -25.87%
Nikkei-225 27,619.61 -0.11% -4.07%
EUREX Stand + ticks
Bund future 147.7 -131
*on the previous day
+++++ COMMODITY MARKETS +++++
CRUDE OIL last VT settlem. +/- % +/- USD % YTD
WTI/Nymex 88.77 86.87 +2.2% +1.90 +25.1%
Brent/ICE 95.31 93.02 +2.5% +2.29 +28.9%
GAS VT Settlem. +/- EUR
Dutch TTF 251.00 214.67 +16.9% +36.34 +246.8%
METALS last day before +/- % +/- USD % YTD
Gold (Spot) 1,710.71 1,712.40 -0.1% -1.70 -6.5%
Silver (Spot) 18.14 18.05 +0.5% +0.09 -22.2%
Platinum (Spot) 849.40 837.00 +1.5% +12.40 -12.5%
Copper Future 3.45 3.42 +0.9% +0.03 -22.1%
YTD relative to previous day’s close
The gas price went up by 16.9 percent to EUR 251.00 per megawatt hour, compared to around EUR 80 at the beginning of the year. On Friday it had fallen by more than 12 percent because Gazprom had announced that it would resume deliveries. After the market closed, it was then announced that the delivery could not be made because of an alleged leak. The futures contracts on the stock markets then collapsed, and gas trading was only able to react at the beginning of the week. The OPEC+ oil cartel poured oil on the fire of the energy crisis. A production cut of 100,000 barrels per day has been decided there. This should also drive the price of oil further up.
+++++ ECONOMIC OUTLOOK ++++++
There are no important dates to publish.
+++++ FINANCIAL MARKETS EUROPE +++++
Concerns that the energy crisis would spread caused significant losses on the European stock markets at the beginning of the week. On Monday, the cash markets caught up with the crash that had already overtaken the futures contracts on Friday evening with the Russian gas supply stop. The impulses from the USA were missing: There was no trading here due to a public holiday. “The energy crisis is again the number one issue,” said one market participant. This means that worries about recession and inflation are increasing again. The question now is whether a new, coordinated EU response to the crisis will be found, including a coordinated approach to the excess profit tax. The traffic light coalition in Germany launched a 65 billion euro relief package at the weekend, which is to be financed by excess profits. The European oil sector was up 2.2 percent on the back of rising oil prices. The energy crisis put the banks under pressure because they often act as the opposite side of the suppliers on the futures market: “The fear of a Lehman-style crisis in the European energy sector is growing,” said Jochen Stanzl from CMC Markets. In the DAX, Deutsche Bank fell by 4.6 percent, Commerzbank fell by 3.7 percent. The derivatives-strong French such as BNP and Societe Generale fell by up to 2.4 percent. The daily loser in Europe was the car industry with minus 4.8 percent, which will suffer from a recession. Steelmaker Arcelormittal fell 3.2 percent. On Friday evening, the group announced the closure of two plants in Germany at the end of the month. The day before, the company had already announced the temporary shutdown of a blast furnace in Spain. High gas and electricity costs reduced competitiveness.
+++++ CURRENCIES +++++
FOREX last +/- % Mon, 8:04 Fri, 17:07 % YTD
EUR/USD 0.9931 +0.1% 0.9883 1.0022 -12.7%
EUR/JPY 139.55 +0.4% 138.76 140.43 +6.6%
EUR/CHF 0.9735 -0.1% 0.9713 1.0201 -6.2%
EUR/GBP 0.8622 -0.2% 0.8632 0.8659 +2.6%
USD/JPY 140.50 +0.2% 140.44 140.12 +22.1%
GBP/USD 1.1518 +0.3% 1.1448 1.1574 -14.9%
USD/CNH (Offshore) 6.9424 +0.3% 6.9487 6.9053 +9.3%
Bitcoin
BTC/USD 19,862.17 -0.6% 19,986.15 20,195.00 -57.0%
YTD relative to previous day’s close
The euro showed itself at 0.9931 dollars and thus recovered somewhat. It was $0.9876 this morning, its lowest level in almost 20 years. Recession worries also led to speculation that the European Central Bank (ECB) will meet the generally expected Thursday rate hike could act a little more cautiously: the current expectations are for a rate hike of 50 or 75 basis points.
+++++ EAST ASIA FINANCIAL MARKETS +++++
Little changed – Some support came from China’s Caixin Services PMI, which remained steady in expansionary territory in August. The US labor market data published on Friday also had a positive effect. They showed employment growth that was still solid, but not quite as rapid, and supported expectations that the US Federal Reserve might raise interest rates by 75 basis points for the third time in a row, but argued against an even larger hike. Nevertheless, recession fears weighed on the mood in Asia after the Russian gas company Gazprom announced on Friday that, contrary to what had been announced, it was suspending gas supplies to Germany until further notice – allegedly because of a leak. Fear of a worsening of the European gas crisis prompted the US exchanges to give up their gains and close with significant losses. In Shanghai, the lockdowns in various Chinese cities were a burden, according to the trade. Oil sector stocks benefited from rising oil prices across the region. All eyes were on the Opec+ conference later in the day. In Hong Kong, CNOOC advanced 2.9 percent and Petrochina 1.9 percent. Inpex improved 0.8 percent in Tokyo. S-Oil was up 3.7 percent in Seoul. On the Australian stock market, Santos, Woodside and Beach gained between 3.1 and 5.2 percent.
+++++ COMPANY REPORTS SINCE 1.30 PM +++++
BASF
takes a significant step in the recycling of plastic waste (chemcycling). The chemical giant has secured large-scale pyrolysis oil for the manufacture of products that are sold to customers interested in sustainability under the Ccycled label: A corresponding framework agreement has now been concluded with Arcus Greencycling Technologies.
UNIPER
has signed a long-term contract with the Australian energy group Woodside for the flexible delivery of liquefied natural gas (LNG) to Germany and Europe. The LNG is to be delivered from January 2023 and the contract will run until 2039, as announced by Uniper SE.
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DJG/ros
(END) Dow Jones Newswires
September 05, 2022 12:21 PM ET (16:21 GMT)