FRANKFURT (Dow Jones) — Europe’s stock markets continued to recover slightly on Friday afternoon. The fact that the 12,000 mark has proved to be a support mark for the second day in a row gives the DAX a little confidence. In addition, the last trading day in September is also the end of the quarter. Market participants are hoping for a conciliatory closing price above this psychologically important mark. The DAX increased by 0.8 percent to 12,075 points, the Euro-Stoxx-50 by 0.9 percent to 3,298 points.
The focus is on the inflation data from the euro zone and the US. In the EU, they have shot up by 10 percent, which no longer deters the market: German inflation had already jumped by this amount, and in the Netherlands prices even exploded by a previously unimaginable 17 percent in September.
Inflation in US and Europe continues to spread
Ulrike Kastens, economist for Europe at the asset manager DWS, emphasizes that energy prices are not the only price drivers. Although they have risen by 40.8 percent, the increase in food prices by 11.8 percent is also having an increasing impact. Prices for consumer durables also rose further (+5.6 percent), which is reflected in the rise in core inflation from 4.3 percent in August to 4.8 percent now.
“The ECB in particular will be concerned about this because the price trend is continuing to widen,” warns Kastens. The planned German gas brake should have a somewhat slowing effect in the coming months. But “just a normalization of the monetary policy is therefore not sufficient in this environment,” concludes Kastens, with a view to the need for further interest rate hikes by the ECB.
The USA showed a similar picture: There the core rate of the important PCE deflator rose by 4.9 percent, which also shows an increase across the board. “So there’s no reason for the Fed to be any more cautious about raising interest rates,” says one trader. Accordingly, statements have already been made by Fed governor Lael Brainard that there should be no premature rate cuts. The Chicago Purchasing Managers’ Index is not providing fresh impetus.
Adidas and Puma weak after Nike numbers
Construction and media stocks continue to be among the favorites on the stock market. Interest-sensitive stocks like Vonovia are also recovering from their sharp downtrend by 4.4 percent.
Siemens Healthineers is at the top of the DAX with a plus of 6.2 percent. Jefferies analysts reiterated their buy recommendation, noting that the fourth quarter tends to be the company’s strongest. They also assume that Siemens Healthineers will achieve the goals set for 2022 in all areas.
There is pressure on the shares of sporting goods manufacturers according to figures from Nike: After a slump in profits in the first quarter of the business year, the US sporting goods manufacturer gave a gloomy outlook in view of high inventories in the run-up to the important Christmas business. According to the management, the reduction will be accompanied by stronger discount campaigns. In the current environment of high inflation rates, uncertain consumer demand and falling sales in China, this will put additional pressure on margins. Nike falls over 10 percent and weighs on the entire industry. Adidas lost 5.5 percent and Puma even lost 8.4 percent.
Porsche just slightly up after IPO
The car sector in Europe is at the bottom of the price list with a minus of 0.7 percent. The stock market newcomer Porsche is only 0.1 percent higher at 82.58 euros. However, the IPO on the previous day is definitely considered a success, given the difficult market environment. The closing price of EUR 82.50 on the previous day corresponded exactly to the issue price at the upper end of the range. The parent companies VW (-0.8%) and Porsche Holding (-4.7%) give way due to shifts into the new shares.
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Stock index last +/-% absolute +/-% YTD
Euro Stoxx 50 3,301.48 +0.7% 22.44 -23.2%
Stoxx 50 3,323.02 +0.4% 12.93 -13.0%
DAX 12,073.17 +0.8% 97.62 -24.0%
MDAX 22,224.83 +2.0% 433.80 -36.7%
TecDAX 2,653.92 +1.8% 46.46 -32.3%
SDAX 10,443.70 +1.8% 182.30 -36.4%
FTSE 6,875.38 -0.1% -6.21 -6.8%
CAC 5,726.45 +0.9% 49.58 -19.9%
Fixed income market last absolute +/- YTD
German ten-year return 2.08 -0.10 +2.26
US 10-year yield 3.70 -0.09 +2.19
FOREX last +/- % Fri, 8:19 Thu, 17:32 % YTD
EUR/USD 0.9767 -0.5% 0.9816 0.9782 -14.1%
EUR/JPY 141.20 -0.5% 141.83 141.23 +7.9%
EUR/CHF 0.9565 -0.1% 0.9582 1.0207 -7.8%
EUR/GBP 0.8803 -0.3% 0.8827 0.8866 +4.8%
USD/JPY 144.57 +0.1% 144.51 144.46 +25.6%
GBP/USD 1.1095 -0.3% 1.1120 1.1032 -18.0%
USD/CNH (Offshore) 7.1263 +0.4% 7.0886 7.1159 +12.2%
Bitcoin
BTC/USD 19,410.57 -0.1% 19,448.00 19,269.00 -58.0%
ROHOEL last VT-Settlem. +/- % +/- USD % YTD
WTI/Nymex 79.82 81.23 -1.7% -1.41 +13.4%
Brent/ICE 87.83 88.49 -0.7% -0.66 +18.8%
GAS VT Settlem. +/- EUR
Dutch TTF 188.90 203.75 -7.3% -14.85 +215.6%
METALS last day before +/- % +/- USD % YTD
Gold (Spot) 1,668.89 1,660.80 +0.5% +8.09 -8.8%
Silver (Spot) 19.09 18.83 +1.4% +0.27 -18.1%
Platinum (Spot) 869.50 868.50 +0.1% +1.00 -10.4%
Copper Future 3.43 3.44 -0.3% -0.01 -22.6%
YTD relative to previous day’s close
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(END) Dow Jones Newswires
September 30, 2022 10:05 ET (14:05 GMT)
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