MARKETS EUROPE/Very firm thanks to Fed-Powell comments

FRANKFURT (Dow Jones) — Europe’s stock markets recovered strongly at the end of the week. The DAX rose by 2.1 percent to 14,028 points, the Euro Stoxx 50 gained 2.5 percent to 3,703. The market thus recovered towards the end of the week in a technical counter-movement. Statements by Fed President Jerome Powell provided support. He acknowledged that monetary tightening might not go as smoothly as the central bank would like. “But that could also be a sign that the Fed won’t just hike rates regardless of the potential economic damage,” CMC said.

Reporting season is coming to an end

The reporting season in the DAX for the first quarter was coming to an end and Deutsche Telekom ensured a positive conclusion. Operating profit based on adjusted operating income after leases rose 6.8 percent to 9.873 billion – compared to a consensus forecast of 9.548 billion. In addition, the Bonners increased the prognosis. The price closed 2.1 percent higher.

Freenet gained 1.6 percent. Jefferies analysts highlighted the development of the operating result. Despite declining sales in the first quarter, it exceeded profit expectations by 5 percent. This is due to cost efficiency and lower bad debts. According to the analysts, both the outlook for the current financial year and the medium-term operating profit target, which is well above the consensus values, have been confirmed.

According to the quarterly figures, Carl Zeiss Meditec grew by 5.4 percent. While sales have risen sharply, as expected, the earnings side was a positive surprise, according to retailers. Aumann made a leap of 4.6 percent according to the figures. According to statements on the outlook, Vitesco increased by 7.6 percent.

The announcement of a new share buyback program gave Bilfinger a boost. The stock closed 6.9 percent higher. As the company announced, it intends to buy back its own shares worth up to 100 million euros from July 1st.

Market participants should not be irritated by a few clear negative signs in the prices, because they were due to the dividend deductions: On Friday alone, Adidas, Eon, Fresenius Medical Care, Heidelbergcement and VW paid out their profit shares to shareholders in the DAX, and Nemetschek in the TecDAX .

The shares of the Belgian biotechnology company UCB fell 13.6 percent. The US health authority FDA initially rejected the preparation bimekizumab for psoriasis.

Fortum and Uniper are potential beneficiaries of the Energy Security Act

The shares of Fortum (+11.1%) and Uniper (+10.7%) were notably firm. For the analysts at UBS, the two energy companies are potential beneficiaries of the energy security law that is to be reformed in Germany. The analysts referred to statements by Fortum management, according to which the draft appears to contain that suppliers are not obliged to comply with contractually agreed prices if the energy system is converted as a result of a gas restriction.

Although details are still being worked out, the federal government appears to be taking measures to ensure the economic viability of the companies concerned. If the new law were to be launched in this way, it would be very positive for Fortum and Uniper.

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Index Closing Development Development Development

was absolute in % since

beginning of the year

Euro Stoxx 50 3,703.42 +89.99 +2.5% -13.8%

Stoxx-50 3,605.06 +74.47 +2.1% -5.6%

Stoxx 600 433.48 +9.08 +2.1% -11.1%

XETRA DAX 14,027.93 +288.29 +2.1% -11.7%

FTSE-100 London 7,418.15 +184.81 +2.6% -2.0%

CAC-40 Paris 6,362.68 +156.42 +2.5% -11.1%

AEX Amsterdam 694.13 +19.04 +2.8% -13.0%

ATHEX-20 Athens 2,080.18 +48.19 +2.4% -2.9%

BEL-20 Brussels 3,944.56 +14.35 +0.4% -8.5%

BUX Budapest 41,255.70 +1255.49 +3.1% -18.7%

OMXH-25 Helsinki 4,746.70 +94.34 +2.0% -16.5%

ISE NAT. 30 Istanbul 2,681.97 +20.44 +0.8% +32.4%

OMXC-20 Copenhagen 0.00 0.00 0.0% -13.3%

PSI 20 Lisbon 5,655.29 +49.83 +0.9% +2.4%

IBEX-35 Madrid 8,338.10 +137.70 +1.7% -4.3%

FTSE-MIB Milan 24,048.29 +482.06 +2.0% -13.8%

RTS Moscow 1,132.23 -7.82 -0.7% -29.1%

OBX Oslo 1,109.57 +24.86 +2.3% +3.8%

PX Prague 1,296.91 +17.42 +1.4% -9.1%

OMXS-30 Stockholm 2,011.33 +37.86 +1.9% -16.9%

WIG-20 Warsaw 1,765.63 +74.01 +4.4% -22.1%

ATX Vienna 3,099.87 +66.77 +2.2% -20.9%

SMI Zurich 11,650.42 +144.29 +1.3% -9.5%

Fixed income market last absolute +/- YTD

German ten-year return 0.95 +0.11 +1.13

US 10-year yield 2.92 +0.07 +1.41

FOREX last +/- % Fri, 8:50 Thu, 17:32 % YTD

EUR/USD 1.0413 +0.3% 1.0404 1.0409 -8.4%

EUR/JPY 134.66 +1.0% 133.86 133.39 +2.9%

EUR/CHF 1.0430 +0.2% 1.0424 1.0392 +0.5%

EUR/GBP 0.8504 -0.1% 0.8513 0.8511 +1.2%

USD/JPY 129.32 +0.7% 128.64 128.15 +12.3%

GBP/USD 1.2245 +0.4% 1.2223 1.2231 -9.5%

USD/CNH (Offshore) 6.7998 -0.4% 6.8245 6.8123 +7.0%

Bitcoin

BTC/USD 30,453.72 +7.4% 30,284.44 29,096.86 -34.1%

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

WTI/Nymex 110.09 106.13 +3.7% 3.96 +50.1%

Brent/ICE 110.98 107.45 +3.3% 3.53 +46.1%

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

Gold (Spot) 1,810.34 1,822.00 -0.6% -11.67 -1.1%

Silver (Spot) 21.03 20.69 +1.6% +0.34 -9.8%

Platinum (Spot) 944.00 948.21 -0.4% -4.21 -2.7%

Copper Future 4.12 4.10 +0.6% +0.02 -7.4%

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DJG/mpt/flf

(END) Dow Jones Newswires

May 13, 2022 12:14 PM ET (16:14 GMT)