MARKETS EUROPE/Buyers are returning – lower valuations are tempting

FRANKFURT (Dow Jones) — The European stock markets started a countermovement on Tuesday after the recent heavy losses. The DAX is 1.2 percent higher at 13,544 points, the Euro-Stoxx-50 is up 1.3 percent to 3,574 points. According to the trade, the lower prices that have now been reached are being used for cautious purchases.

In view of the prevailing pronounced uncertainties, however, fluctuations are likely to remain high and the situation fragile. From a market point of view, it is particularly problematic that the support for the stock exchanges that has prevailed for years through the liquidity injections of the central banks is threatening to disappear, meaning that the markets will have to do without the so-called Fed put. A growing number of market participants also have doubts that the US Federal Reserve will succeed in guaranteeing a soft landing for the US economy in the fight against inflation.

DAX favorably rated – hour of the brave

For Thomas Altmann, portfolio manager at QC-Partners, the bargain hunter’s hour has now come. The price-earnings ratio in the DAX is now as favorable as it was last in 2018. Those who now have the courage to buy shares have a very strong purchase argument.

There is also a stabilization trend for government bonds. The bond market is also benefiting from the falling oil price. If the price of oil does not continue to rise, this could also slow down inflation, which would again be positive for bonds. Oil prices are currently falling by around 1 percent. North Sea Brent is around $105, compared to $111 the same time the previous day. The price of gas continues to fall steeply. ER is down 3 percent to around $90 after trading at around $110 the previous week.

Bayer exceeds expectations

In the case of the individual values, a flood of quarterly figures is making the courses again. Bayer benefited from a strong agricultural business at the start of the year. Adjusted operating profit climbed 27.5 percent to EUR 5.25 billion, significantly exceeding market expectations. Earnings were driven by significant price and sales increases at Crop Science, especially in the weed killer business. However, the share initially only tends to be asserted.

The Citi analysts rate the April orders and deliveries at Airbus (-0.8%) as “okay”, considering the shortage of engines. All in all, the delivery of 48 aircraft is below the annual trend, but the traditionally strong delivery in December should be noted.

Munich Re earns more and confirms profit forecast

Munich Re (+0.4%) increased its profit in the first quarter despite the impact of bad weather, the corona pandemic and the war in Ukraine. The DAX group, which now expects slightly stronger growth in premiums, confirmed its profit forecast for the year as a whole. The reinsurer’s net profit rose to 608 million from 589 million euros. Analysts had forecast 597 million euros in a consensus published by the company itself.

Siltronic’s first-quarter figures (+4.7%) turned out better than expected. At EUR 417 million, sales exceeded the consensus estimate of EUR 405 million according to UBS. At EUR 186 million, EBITDA was even more significantly above the estimate of EUR 134 million.

Although the automotive supplier Schaeffler earned less in the first quarter despite the increase in sales, the file still increased significantly by 5.2 percent. In the Stoxx sub-indices, the car stocks, which are considered to be particularly cyclical, are at the top with an increase of 2.2 percent. According to the final figures, Aurubis is down 0.7 percent, Fraport is down 3.3 percent. The airport operator has extended the loss due to Russia write-downs, but has confirmed the annual forecast.

In the fourth row, Corstate Capital’s price collapses by almost 40 percent. The real estate investment manager has warned of a declining transaction business and reluctance among customers and has withdrawn the forecast for 2022. Difficulties in refinancing a convertible bond and a bond also weigh heavily.

Stock index last +/-% absolute +/-% YTD

Euro Stoxx 50 3,573.65 +1.3% 46.79 -16.9%

Stoxx 50 3,512.83 +0.8% 29.37 -8.0%

DAX 13,543.95 +1.2% 163.28 -14.7%

MDAX 28,045.02 +0.8% 229.58 -20.2%

TecDAX 2,926.42 +0.9% 25.98 -25.4%

SDAX 12,870.89 +0.7% 85.39 -21.6%

FTSE 7,280.10 +0.9% 63.52 -2.3%

CAC 6,154.55 +1.1% 68.53 -14.0%

Fixed income market last absolute +/- YTD

German ten-year return 1.09 -0.00 +1.27

US 10-year yield 3.05 +0.01 +1.54

FOREX last +/- % Tue, 8:29 Mon, 17:32 % YTD

EUR/USD 1.0557 +0.0% 1.0567 1.0535 -7.2%

EUR/JPY 137.64 +0.0% 137.77 137.21 +5.2%

EUR/CHF 1.0487 -0.0% 1.0481 1.0476 +1.1%

EUR/GBP 0.8566 +0.0% 0.8553 0.8555 +2.0%

USD/JPY 130.34 -0.0% 130.36 130.24 +13.2%

GBP/USD 1.2327 -0.0% 1.2357 1.2314 -8.9%

USD/CNH (Offshore) 6.7392 -0.3% 6.7293 6.7631 +6.1%

Bitcoin

BTC/USD 31,831.86 +3.2% 32,507.39 32,162.66 -31.2%

ROHOEL last VT-Settl. +/- % +/- USD % YTD

WTI/Nymex 102.71 103.09 -0.4% -0.38 +40.0%

Brent/ICE 105.66 105.94 -0.3% -0.28 +39.1%

METALS last day before +/- % +/- USD % YTD

Gold (Spot) 1,861.43 1,854.18 +0.4% +7.25 +1.8%

Silver (Spot) 22.04 21.81 +1.1% +0.23 -5.5%

Platinum (Spot) 974.40 959.88 +1.5% +14.53 +0.4%

Copper Future 4.23 4.19 +1.0% +0.04 -5.0%

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DJG/thl/gos

(END) Dow Jones Newswires

May 10, 2022 03:33 ET (07:33 GMT)