FRANKFURT (Dow Jones) — Europe’s stock exchanges started trading on Tuesday with premiums. Wall Street sets the trend in early business. After the public holiday on Monday, market participants from Great Britain are now also involved again. The news situation has hardly changed overnight, the most important date of the week is the interest rate decision by the US Federal Reserve on Wednesday after the close of trading in Europe. The DAX gains 0.7 percent to 12,887 points and is once again approaching the 13,000 mark, while the Euro Stoxx 50 is up 0.7 percent to 3,525 points.
German producer prices with strongest increase since the beginning of the data series
In the morning, the news comes as a shock that producer prices in Germany have risen far more sharply than expected. Jens-Oliver Niklasch from LBBW called the increase in producer prices by 7.9 percent compared to the previous month as an “incredible price hammer” – the highest rate since the beginning of the data series in 1949 – they were 45.8 percent above the level of the same month last year. The reason for this was again energy prices. But this time not only oil or gas, but also electricity. Companies would only be able to pass part of the price increases on to their customers. But even this remainder will continue to fuel inflation. “None of this bodes well for inflation. It’s here to stay.”
Interest rate futures Monday afternoon suggested an 82 percent chance the Fed will hike rates by 0.75 percentage point and an 18 percent chance the Federal Reserve will hike rates by a full percentage point , according to the CME Group.
“We fear that the Fed could surprise us with another jumbo rate hike,” said Florian Ielpo, head of macro at Lombard Odier Investment Managers. Corporate warnings over the past week indicated that “we may very well be at the beginning of the US recession.” On the other hand, analysts at JP Morgan suggested that the market may have bottomed after last week’s sell-off. With robust corporate earnings, keen investor pessimism and signs that the Fed is able to dampen inflation expectations, “any downside from here would be limited,” they wrote.
On the corporate side, Henkel is in focus. As part of its Capital Markets Day (CMD), the Group raised its forecast for organic sales growth in the current year to 5.5 to 7.5 percent after previously 4.5 to 6.5 percent. The increase comes as no surprise. Berenberg had already written in its outlook on the CMD that the company could raise the target to the upper end of the range. The range now mentioned could therefore be liked by stockbrokers – the share gains 2 percent.
Lenzing cashes forecast 2022
Lenzing shares collapsed by 11.6 percent at the start of trading after the company dropped the earnings forecast for 2022 the previous evening due to limited forecast reliability and high volatility in the energy and raw materials markets. “In the coming days and weeks we will probably see a few more companies from the manufacturing sector withdrawing their forecasts with reference to energy and raw material costs,” fears one market participant. For longer-term investors, a pullback would present a buying opportunity. Analysts are also doing courses: Fraport gain 3.7 percent after an upgrade by Barclays.
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Stock index last +/-% absolute +/-% YTD
Euro Stoxx 50 3,525.48 +0.7% 25.99 -18.0%
Stoxx 50 3,478.48 +0.7% 25.34 -8.9%
DAX 12,887.22 +0.7% 83.98 -18.9%
MDAX 24,070.78 +0.4% 100.45 -31.5%
TecDAX 2,808.94 +0.1% 1.48 -28.4%
SDAX 11,404.20 +0.3% 29.19 -30.5%
FTSE 7,301.71 +0.9% 65.03 -2.0%
CAC 6,093.45 +0.5% 31.86 -14.8%
Fixed income market last absolute +/- YTD
German ten-year return 1.83 +0.03 +2.01
US 10-year yield 3.49 +0.00 +1.98
FOREX last +/- % 00:00 Mon 17:06 % YTD
EUR/USD 1.0028 +0.0% 1.0027 1.0013 -11.8%
EUR/JPY 143.91 +0.2% 143.63 143.50 +10.0%
EUR/CHF 1.0376 -0.0% 1.0371 1.0363 -6.8%
EUR/GBP 0.8759 -0.1% 0.8770 0.8774 +4.3%
USD/JPY 143.47 +0.2% 143.21 143.24 +24.6%
GBP/USD 1.1451 +0.2% 1.1434 1.1417 -15.4%
USD/CNH 7.0158 +0.2% 7.0052 7.0065 +10.4%
Bitcoin
BTC/USD 19,453.48 -0.4% 19,533.05 19,307.13 -57.9%
ROHOEL last VT-Settlem. +/- % +/- USD % YTD
WTI/Nymex 86.12 85.73 +0.5% +0.39 +21.4%
Brent/ICE 92.78 92 +0.8% +0.78 +25.5%
GAS VT Settlem. +/- EUR
Dutch TTF 176.80 182.26 -3.0% -5.46 +187.1%
METALS last day before +/- % +/- USD % YTD
Gold (Spot) 1,673.63 1,676.10 -0.1% -2.47 -8.5%
Silver (Spot) 19.40 19.63 -1.1% -0.22 -16.8%
Platinum (Spot) 928.20 923.15 +0.5% +5.05 -4.4%
Copper Future 3.53 3.53 +0.1% +0.01 -20.2%
YTD based on the closing price of the previous day
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DJG/mpt/cln
(END) Dow Jones Newswires
September 20, 2022 03:34 ET (07:34 GMT)
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