FRANKFURT (Dow Jones) — Europe’s stock exchanges continue to expand the losses on Monday afternoon. The DAX fell by 1 percent to 14,999 points, the Euro-Stoxx-50 fell by 1.3 percent to 4,125 points. Investors remain cautious about the monetary policy decisions of the US Federal Reserve and ECB later in the week. The German GDP is not helpful: it fell by 0.2 percent in the fourth quarter compared to the previous quarter. For economist Jens-Oliver Niklasch from LBBW, the contraction fits into the overall picture of the indicators, which means that at least a short recession is becoming more likely again. Interest rate expectations regarding the ECB are unlikely to be influenced by the numbers.
The interest rate decisions of the US Federal Reserve and the European Central Bank are on the agenda over the course of the week, and the Bank of England is also meeting. The Fed will have one rate hike by a quarter of a percentage point, firmly expected by the ECB by half a percentage point. Both are therefore considered priced in. As a result, deviations from expectations in particular should move prices more strongly. In addition, however, it is also about how hawkish or dovish the central bankers will present themselves, how far they will raise interest rates later and where they see the interest rate peak.
Bucking the trend in the Stoxx sub-index of European bank stocks (-0.4%), Banca Monte dei Paschi di Siena (+4.4%) and Unicredit (+1.5%) rose significantly. The ECB’s latest moves to raise interest rates should mean Italian banks announce higher profits in 2023, expects Azzurra Guelfi, an analyst at Citi. “Rising interest rates are crucial for the profitability of Italian banks,” says Guelfi.
The clear sector losers are technology stocks with losses of 2.8 percent. Here ASML burden with a minus of 4 percent. The company is threatened with export restrictions on its chip manufacturing technology to China. The index of travel and leisure stocks fell 1.4 percent. Ryanair cheaper after quarterly figures by 1.2 percent.
Rheinmetall fall by 2.2 percent. You had long been traded as the first successor for Linde, but now Commerzbank (+0.3%) has thwarted the plan by bringing forward the numbers and resulting in a positive operating result as a criterion for promotion to the DAX. However, Rheinmetall now have a chance of promotion for the regular DAX review in March.
PNE collapse – sales initially called off
PNE collapse by 17.5 percent. The majority shareholder canceled the sale of his block of shares. Photon Management GmbH, controlled by Morgan Stanley, is the largest shareholder in the wind power project developer. The now withdrawn sales plans became known in October. Potential buyers would have been large infrastructure funds.
Stabilus fall by 6.2 percent. The gas spring manufacturer benefited from a strong development in the Automotive Powerise and Industry divisions in the first quarter of the 2022/23 financial year. The company, which is listed on the MDAX, was able to increase sales and adjusted profit, but the margins suffered from higher material costs, among other things.
It is considered positive that Deutz has now brought a strong shareholder on board with the participation of Daimler Truck. In addition, Deutz is expanding its customer base. The stock is up 4.3 percent.
According to business figures, Philips increased by 7.1 percent. The company reported a loss for the fourth quarter, but operationally things are going better than expected.
The share of 888 Holding is down 26.6 percent. The fact that CEO Itai Pazner is surprisingly leaving the online gaming provider with immediate effect is a burden. Second, following an internal compliance review, accounts of VIP customers in the Middle East were suspended pending further investigation. Analysts at AJ Bell say the news that accounts in the Middle East have been suspended for failing to meet necessary money laundering standards is “incredibly damaging”. Because the reason for the CEO’s resignation is not given, the assumption is that this debacle is to blame.
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Stock index last +/-% absolute +/-% YTD
Euro Stoxx 50 4,126.42 -1.2% -51.59 +8.8%
Stoxx 50 3,836.82 -0.7% -25.38 +5.1%
DAX 15,006.03 -1.0% -144.00 +7.8%
MDAX 28,629.12 -1.5% -446.74 +14.0%
TecDAX 3,151.87 -1.6% -51.58 +7.9%
SDAX 13,049.13 -1.9% -254.02 +9.4%
FTSE 7,753.98 -0.1% -11.17 +4.2%
CAC 7,038.63 -0.8% -58.58 +8.7%
Fixed income market last absolute +/- YTD
German ten-year return 2.32 +0.08 -0.26
US 10-year yield 3.55 +0.04 -0.33
FOREX last +/- % Mon, 8:03 Fri, 17:30 % YTD
EUR/USD 1.0898 +0.3% 1.0865 1.0859 +1.8%
EUR/JPY 141.82 +0.5% 140.74 141.05 +1.0%
EUR/CHF 1.0026 +0.2% 1.0005 1.0000 +1.3%
EUR/GBP 0.8793 +0.3% 0.8768 0.8769 -0.6%
USD/JPY 130.13 +0.2% 129.52 129.90 -0.8%
GBP/USD 1.2394 +0.0% 1.2392 1.2384 +2.5%
USD/CNH (Offshore) 6.7526 +0.0% 6.7539 6.7646 -2.5%
Bitcoin
BTC/USD 23,172.43 -2.5% 23,691.41 23,101.65 +39.6%
CRUDE OIL last VT settlem. +/- % +/- USD % YTD
WTI/Nymex 79.67 79.68 -0.0% -0.01 -1.0%
Brent/ICE 86.46 86.66 -0.2% -0.20 +0.6%
GAS VT Settlem. +/- EUR
Dutch TTF 57.01 55.43 +2.9% +1.58 -23.4%
METALS last day before +/- % +/- USD % YTD
Gold (Spot) 1,924.96 1,928.12 -0.2% -3.16 +5.5%
Silver (Spot) 23.66 23.60 +0.2% +0.05 -1.3%
Platinum (Spot) 1,012.90 1,014.50 -0.2% -1.60 -5.2%
Copper Future 4.20 4.22 -0.5% -0.02 +10.3%
YTD relative to previous day’s close
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(END) Dow Jones Newswires
January 30, 2023 06:51 ET (11:51 GMT)
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