FRANKFURT (Dow Jones) — The European stock markets were trading well on Monday afternoon. The DAX gains 0.6 percent to 13,655 points. The Euro Stoxx 50 rose by 0.8 percent to 3,756 points. The upswing is relatively market-wide, with the exception of pharmaceutical stocks and the banking sector, all major Stoxx sector indices are more or less clearly in the black. Europe’s utilities are on the rise, with the sub-index increasing by almost 1 percent. Price drivers are analyst upgrades and the sale of Veolia’s waste management business in the UK. High valuations were achieved there when it was sold to Macquarie. Veolia rise 1 percent. RWE is up 2.1 percent, Jefferies has announced a price target of 54 euros, Eon even rose by 2.9 percent after being freed from “underweight” by Morgan Stanley.
Traders believe that the market is still torn between rising interest rates on the one hand and the still favorable economic outlook and good corporate data on the other. After the very strong US labor market report further fueled interest rate speculation on Friday, it is now considered priced in. The euro is almost unchanged just below the 1.02 dollar mark.
German economy firmly on course for recession
The Sentix economic index for Germany paints an unchanged critical picture in August. The overall index fell to minus 24.4 after minus 24.2 points in July, which is the lowest value since May 2020. “The economy remains firmly on course for recession,” judged Sentix Managing Director Manfred Hbner. Also in the euro zone the economic situation remains difficult. The economic index for this region rose slightly to minus 25.2 (minus 26.4) points. “But this in no way means an all-clear signal,” explained Hbner. “A recession in the euro zone is still very likely.” There is no relief from inflation, energy prices or consumer confidence. Meanwhile, consumers are becoming more and more aware of the financial burdens that high energy costs represent. On the one hand, the energy allocations are rising for more and more consumers, on the other hand, the same process is also taking place with companies, which in turn have to pass on the increased costs.
Siemens Energy weaker – headwind from Gamesa
The reporting season is still in focus. In the course of the week, another 56 companies from the Stoxx 600 put their figures on the table. Siemens Energy had already presented figures in the morning, the shares are losing 0.5 percent. The wind power subsidiary Gamesa as well as restructuring due to the Ukraine war brought Siemens Energy even higher losses than expected. However, Siemens Energy has confirmed the forecast for operational development. In addition, the order backlog has reached a new record level of EUR 93.4 billion.
PostNL, on the other hand, grew 0.3 percent despite weak figures. The Dutch postal service provider lowered its outlook even more than expected. “That’s surprising, especially given the numbers at Deutsche Post,” commented a retailer, referring to their strong data from last week. Above all, the volume in the parcel business fell more sharply than expected with a minus of 12.6 percent. This is related to declining online purchases after Corona. Deutsche Post are the losers in the DAX with a discount of 2.1 percent.
Hypoport increase by 2.5 percent at noon. As the final quarterly figures show, the financial service provider also significantly increased its profits in the second quarter. As announced by Hypoport, after-tax profit rose from EUR 7.4 million to EUR 9.7 million in the period from April to June. Earnings per share were EUR 1.63 after EUR 1.12.
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Stock index last +/-% absolute +/-% YTD
Euro Stoxx 50 3,755.85 +0.8% 30.46 -12.6%
Stoxx 50 3,664.32 +0.6% 23.12 -4.0%
DAX 13,655.28 +0.6% 81.35 -14.0%
MDAX 27,854.08 +0.3% 81.50 -20.7%
TecDAX 3,168.89 +0.8% 23.74 -19.2%
SDAX 12,995.54 +0.2% 28.62 -20.8%
FTSE 7,478.61 +0.5% 38.91 +0.7%
CAC 6,529.81 +0.9% 57.46 -8.7%
Fixed income market last absolute +/- YTD
German ten-year return 0.90 -0.05 +1.08
US 10-year yield 2.80 -0.03 +1.29
FOREX last +/- % Mon 9:10am Fri 5:44pm % YTD
EUR/USD 1.0182 +0.0% 1.0185 1.0126 -10.5%
EUR/JPY 137.46 -0.1% 137.80 138.32 +5.0%
EUR/CHF 0.9757 -0.3% 0.9777 0.9753 -6.0%
EUR/GBP 0.8428 -0.1% 0.8416 0.8421 +0.3%
USD/JPY 135.00 -0.1% 135.32 136.60 +17.3%
GBP/USD 1.2082 +0.1% 1.2102 1.2024 -10.7%
USD/CNH (Offshore) 6.7690 +0.1% 6.7681 6.7691 +6.5%
Bitcoin
BTC/USD 24,101.87 +3.4% 23,784.74 20,837.45 -47.9%
ROHOEL last VT-Settl. +/- % +/- USD % YTD
WTI/Nymex 87.98 89.01 -1.2% -1.03 +23.0%
Brent/ICE 93.98 94.92 -1.0% -0.94 +26.2%
GAS VT close +/- EUR
Dutch TTF 195.75 194.75 -0.3% -0.58 +221.5%
METALS last day before +/- % +/- USD % YTD
Gold (Spot) 1,777.06 1,775.10 +0.1% +1.96 -2.9%
Silver (Spot) 20.13 19.89 +1.2% +0.24 -13.6%
Platinum (Spot) 934.90 932.64 +0.2% +2.26 -3.7%
Copper Future 3.54 3.55 -0.4% -0.01 -20.1%
YTD at the close of the day
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DJG/thl/cln
(END) Dow Jones Newswires
August 08, 2022 06:34 ET (10:34 GMT)
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