MARKETS EUROPE/Weaker – Panic buying at Zur Rose

FRANKFURT (Dow Jones)–Profit-taking characterizes stock market activity in Europe at the start on Friday. The week of the central banks is coming to an end, their statements, which were understood as less hawkish, had provided a strong momentum on the stock exchanges. These profits are now taken.

In addition, the requirements from the USA are slowing down. There, the quarterly figures and/or outlook from Amazon, Apple and Alphabet late last night were disappointing. Disappointments also came from Qualcomm and Ford’s auto sector.

The DAX fell by 0.9 percent to 15,375 points, the Euro-Stoxx-50 by 0.6 percent to 4,216 points. The DAX has already gained 11 percent since the beginning of the year, and the MDAX even 18 percent.

The US labor market report due in the afternoon is also causing restraint. It is considered one of the most important factors in the US Federal Reserve’s monetary policy considerations. A somewhat weaker labor market report, with the associated hopes of less sharp interest rate increases on the stock exchanges, could be received positively as long as it does not fall far short of expectations and trigger fears of a recession. The analysts at Helaba emphasize that the US Federal Reserve sees the still tight labor market as a price driver.

In addition, stockbrokers keep an eye on EU producer prices to see if they confirm the hope of falling inflation. A year-on-year increase of more than 22 percent is expected in December, after 27 percent in November.

Price explosion at Zur Rose

Zur Rose started the day with a price explosion of more than 90 percent, meanwhile the plus is “only” around 30 percent. Traders speak of panicked short coverage after the shares of the Swiss online pharmacy were traded as a clear “underperformer” compared to Shop Apotheke. Zur Rose has now announced that it will sell the business in Switzerland to Migros for CHF 360 million, which corresponds to more than half the annual turnover. This flushes the money into the till that Zur Rose used to fund the introduction of the e-prescription in Germany and the digitalization positioned in healthcare. As a result, the Swiss compete much more strongly with shop pharmacies (-4.1%). Jefferies analysts speak of a re-rating of the stock.

After convincing business figures from the competitors, the Spanish Caixabank (+2.2%) has now also presented convincing figures. A stock trader classifies the net profit, which rose by 62 percent in the fourth quarter, as “strong”. In addition to the dividend, the profit is passed on to the shareholders via a share buyback program.

In the SDAX, SGL Carbon rose by 9 percent to EUR 8.48 after Stifel raised the price target to EUR 13 from EUR 9. Hapag-Lloyd, on the other hand, lost 2.8 percent, and the analysts downgraded the share to “Sell”.

Sanofi is down 4.5 percent. The French pharmaceutical company has exceeded expectations in terms of profits, according to Jefferies. However, sales are below expectations and the outlook points to reduced consensus expectations. Also according to quarterly figures, TomTom in Amsterdam is up 7.6 percent.

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

Euro Stoxx 50 4,214.09 -0.6% -27.03 +11.1%

Stoxx 50 3,836.48 -0.2% -7.30 +5.1%

DAX 15,375.17 -0.9% -134.02 +10.4%

MDAX 29,476.34 -1.1% -332.58 +17.4%

TecDAX 3,291.99 -1.3% -43.99 +12.7%

SDAX 13,345.13 -1.2% -155.32 +11.9%

FTSE 7,824.07 +0.1% 3.91 +4.9%

CAC 7,119.99 -0.6% -46.28 +10.0%

Fixed income market last absolute +/- YTD

German ten-year return 2.13 +0.05 -0.44

US 10-year yield 3.39 -0.00 -0.49

FOREX last +/- % Fri, 8:24 Thu, 17:30 % YTD

EUR/USD 1.0895 -0.1% 1.0902 1.0926 +1.8%

EUR/JPY 140.21 -0.1% 140.11 140.31 -0.1%

EUR/CHF 0.9984 +0.2% 0.9970 0.9950 +0.9%

EUR/GBP 0.8935 +0.2% 0.8926 0.8904 +1.0%

USD/JPY 128.69 +0.0% 128.52 128.39 -1.9%

GBP/USD 1.2194 -0.3% 1.2213 1.2273 +0.8%

USD/CNH (Offshore) 6.7527 +0.2% 6.7460 6.7334 -2.5%

Bitcoin

BTC/USD 23,376.94 -0.8% 23,531.44 23,870.81 +40.8%

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

WTI/Nymex 75.60 75.88 -0.4% -0.28 -6.0%

Brent/ICE 81.51 82.17 -0.8% -0.66 -4.9%

GAS VT Settlem. +/- EUR

Dutch TTF 0.00 59.53 -100.0% -59.53 -21.9%

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

Gold (Spot) 1,912.89 1,912.93 -0.0% -0.04 +4.9%

Silver (Spot) 23.37 23.48 -0.4% -0.11 -2.5%

Platinum (Spot) 1,027.35 1,025.50 +0.2% +1.85 -3.8%

Copper Future 4.11 4.09 +0.4% +0.02 +7.8%

YTD relative to previous day’s close

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(END) Dow Jones Newswires

February 03, 2023 03:54 ET (08:54 GMT)

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