FRANKFURT (Dow Jones) — After the setback on Friday, the European stock markets are down again at the start of the week. The DAX lost 1.0 percent to 15,276 points, the Euro-Stoxx-50 fell by 1.2 percent to 4,181 points. The development around the Silicon Valley Bank (SVB) makes investors cautious, the sub-index of European banks loses 2.2 percent. “The system risks have been averted for the time being,” said one market participant. The Federal Deposit Insurance Fund FDIC took over the ailing bank and guaranteed the deposits. Federal Reserve governors are holding a special meeting on Monday.
In Asian trading, the dollar came under more pressure as the euro rose to 1.0720 from 1.0650 previously. The currency pair is currently trading at $1.0709. The driver is the expectations for the interest rate hike by the US Federal Reserve in the coming week. Goldman Sachs economists said Sunday night they no longer expected the Fed to hike rates at its next March 22 meeting. Previously, they had expected an increase of 25 basis points. The economists said they still expected rate hikes in May, June and July, ultimately taking US interest rates to between 5.25 and 5.5 percent.
Lots of news cliffs ahead
The week has it all. While the risks emanating from the collapsed Silicon Valley Bank (SVB) still have to be classified at the start of the week, consumer prices in the USA will follow on Tuesday. In the past few months, they have repeatedly provided impetus for bonds and thus also for the dollar.
The meeting of the European Central Bank (ECB) is on the calendar for Thursday, after all, a step of 50 basis points has already been announced. Anything else would come as a surprise, but with recent developments in the US banking market, a lot is possible. The Great Decay on the futures market will follow on Friday, which alone could cause a volatility spike.
And above all, the meeting of the US Federal Reserve in the coming week is enthroned. While a week ago an interest rate hike of 50 basis points was still expected, the expectation has meanwhile returned to 25 basis points. Now there are already the first voices that do not rule out the possibility that the US Federal Reserve could also take a pause in interest rates with a view to the domestic banking landscape.
Lufthansa burdened by strikes at airports
Lufthansa suffers from the strikes at several airports, the share loses 1.6 percent. The three northern German airports Hamburg, Bremen and Hanover as well as the capital airport BER are affected. Air traffic is likely to be severely affected. “Flight cancellations could weigh on airline stocks,” said one market participant.
One market participant does not expect the sale of Qualtrics to have a greater impact on SAP shares (-1.3%). “The price of $18.15 per share is in line with expectations,” he says. Silverlake and a Canadian pension fund made a corresponding offer last week, and SAP’s price rose as a result. Now they have been awarded the contract. At SAP, the sale brought $7.7 billion into the coffers.
Deutsche Post are on the winning side. The price increases by 2.0 percent. “Thus, the stock reacts positively to the fact that there is no strike,” said one market participant. The costs of the degree take a back seat, he adds.
Porsche has presented figures, the share is down 1.5 percent. Despite only slightly increasing car sales and high costs, the sports car manufacturer significantly increased both its sales and the operating result last year. Profits increased at a disproportionate rate to sales, which is why the operating return on sales climbed to 18.0 from 16.0 percent in the previous year. All in all, the 2022 figures are a touch below expectations, as one trader says.
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Stock index last +/-% absolute +/-% YTD
Euro Stoxx 50 4,180.76 -1.2% -48.77 +10.2%
Stoxx 50 3,816.59 -1.0% -37.92 +4.5%
DAX 15,276.05 -1.0% -151.92 +9.7%
MDAX 27,682.31 -1.1% -316.32 +10.2%
TecDAX 3,226.21 -0.9% -29.04 +10.4%
SDAX 13,134.43 -1.1% -144.10 +10.1%
FTSE 7,672.57 -1.0% -75.78 +4.0%
CAC 7,139.42 -1.1% -81.25 +10.3%
Fixed income market last absolute +/- YTD
German ten-year return 2.38 -0.12 -0.19
US 10-year yield 3.66 -0.04 -0.22
FOREX last +/- % Mon 9:11 Fri 17:02 % YTD
EUR/USD 1.0709 +0.1% 1.0725 1.0686 +0.1%
EUR/JPY 143.90 +0.1% 144.27 143.53 +2.5%
EUR/CHF 0.9806 +0.0% 0.9817 0.9825 -0.9%
EUR/GBP 0.8860 +0.1% 0.8856 0.8835 +0.1%
USD/JPY 134.37 -0.0% 134.52 134.31 +2.5%
GBP/USD 1.2088 +0.0% 1.2111 1.2096 -0.1%
USD/CNH (Offshore) 6.9018 -0.2% 6.9041 6.9095 -0.4%
Bitcoin
BTC/USD 22,445.59 +2.6% 22,482.48 19,993.29 +35.2%
CRUDE OIL last VT settlem. +/- % +/- USD % YTD
WTI/Nymex 76.51 76.68 -0.2% -0.17 -5.0%
Brent/ICE 83.07 82.78 +0.4% +0.29 -2.7%
GAS VT Settlem. +/- EUR
Dutch TTF 48.15 52.86 -8.9% -4.71 -30.8%
METALS last day before +/- % +/- USD % YTD
Gold (Spot) 1,878.15 1,883.18 -0.3% -5.03 +3.0%
Silver (Spot) 20.77 20.73 +0.2% +0.04 -13.4%
Platinum (Spot) 967.03 957.88 +1.0% +9.15 -9.5%
Copper futures 4.07 4.05 +0.5% +0.02 +6.7%
YTD relative to previous day’s close
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(END) Dow Jones Newswires
March 13, 2023 04:38 ET (08:38 GMT)
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