The midday market overview, compiled by Dow Jones Newswires:
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+++++ STOCK AND BOND MARKETS (12:53) +++++
INDEX level +- % +-% YtD
E-Mini Future S&P 500 4,626.75 +0.0% +16.7%
E-Mini Future Nasdaq-100 16,259.00 +0.1% +42.9%
Euro Stoxx 50 4,539.64 -0.0% +19.7%
Stoxx-50 4,077.34 -0.0% +11.7%
DAX 16,762.54 -0.2% +20.4%
FTSE 7,577.36 +0.4% +1.3%
CAC 7,557.60 +0.1% +16.7%
Nikkei-225 32,843.70 +0.2% +25.9%
EUREX status +/- points +/- points YtD
Bund future 135.13 +0.30 +2.33
+++++ COMMODITIES MARKETS +++++
ROHOEL most recently VT-Settlem. +/-% +/- USD% YTD
WTI/Nymex 71.13 71.32 -0.3% -0.19 -7.4%
Brent/ICE 75.73 76.03 -0.4% -0.30 +1.5%
GAS VT settlem. +/- EUR
Dutch TTF 35.55 36.55 -2.7% -1.00 -56.7%
METALS last day previous +/- % +/- USD % YTD
Gold (spot) 1,987.24 1,981.91 +0.3% +5.33 +9.0%
Silver (spot) 22.94 22.88 +0.3% +0.07 -4.3%
Platinum (spot) 926.09 913.00 +1.4% +13.09 -13.3%
Copper future 3.80 3.78 +0.4% +0.02 -0.3%
YTD based on the previous day’s closing level
Oil prices are falling slightly, with the European gas price falling slightly more by 2.5 percent. Market participants point to the prospect of a prolonged period of mild temperatures across the continent. According to analysts at Commerzbank Research, the decline is due to moderate demand and the hope that Europe will get through the winter without problems. The natural gas reserves in the EU are now 90.75 percent full.
+++++ OUTLOOK FOR STOCKS USA +++++
In the run-up to the publication of US consumer prices in the afternoon, there are signs of a claimed start on Wall Street on Tuesday. The price data has the potential to set the direction for the course of the day, after speculation about significantly falling interest rates in 2024 led to a boost in stocks and sharp declines in market interest rates. If consumer prices deviate more strongly, this could cause a significant dampening of sentiment and uncertainty, especially since the US Federal Reserve will decide on the further course of monetary policy on Wednesday. If inflation has developed more favorably than expected, this will probably have less of an impact given that interest rate speculation is already well advanced. Many players will then prefer to wait and see what the Fed has to say and retreat to the sidelines. When it comes to individual stocks, the focus is on Oracle shares. The price, which has risen by around 40 percent over the course of the year so far, is being severely punished with a loss of around 9 percent in the premarket because the software company narrowly missed the consensus estimate with sales in the second quarter.
+++++ OUTLOOK FOR THE COMPANY +++++
No important dates announced
+++++ OUTLOOK FOR THE ECONOMY ++++++
– US
14:30 Consumer Prices November
FORECAST: 0.0% yoy/+3.1% yoy
previously: 0.0% yoy/+3.2% yoy
Consumer prices core rate
FORECAST: +0.3% yoy/+4.0% yoy
previously: +0.2% yoy/+4.0% yoy
+++++ FINANCIAL MARKETS EUROPE +++++
Claimed – “The market is waiting for the US inflation data,” said one market participant. In the afternoon they could provide information about whether speculation about falling key interest rates in the coming year is exaggerated or not. The markets are currently expecting the US Federal Reserve to cut interest rates by a total of 100 basis points next year. The first Interest rate cut is expected in March or May. According to the inflation data, the US Federal Reserve will soon come into focus with its decision on Wednesday, then the ECB with its meeting on Thursday. MTU stands out with a loss of 2.9 percent. Dealers see the reason in press reports that the US aviation authority wants to set up new maintenance rules for the problem-plagued PW1100G engines from Pratt & Whitney, in which MTU has a share in the program. The final annual figures from Carl Zeiss Meditec (+8.6%) are positive. The fact that the margin was reached at the lower edge of the forecast range should now be sufficiently priced into the share price. In addition, sales increased solidly in all regions and market shares were gained. Nokia gain 1.1 percent. As expected, the Finns have lowered their margin target, but have also announced a network order from Deutsche Telekom and an acquisition in the USA. The $1.1 billion acquisition of the US biotech company Icosavax by Astrazeneca (+1.7%) is going well.
+++++ FOREX +++++
last +/- % Tue, 8:13 Mon, 5:29 pm % YTD
EUR/USD 1.0794 +0.3% 1.0780 1.0746 +0.8%
EUR/JPY 156.72 -0.4% 156.73 157.33 +11.7%
EUR/CHF 0.9452 -0.1% 0.9446 0.9451 -4.5%
EUR/GBP 0.8591 +0.2% 0.8568 0.8565 -2.9%
USD/JPY 145.19 -0.7% 145.36 146.41 +10.7%
GBP/USD 1.2565 +0.1% 1.2581 1.2547 +3.9%
USD/CNH (Offshore) 7.1807 -0.2% 7.1863 7.1948 +3.7%
Bitcoin
BTC/USD 41,684.18 +1.1% 41,769.78 41,733.08 +151.1%
YTD based on the previous day’s closing level
The dollar is weakening ahead of November’s highly anticipated US consumer prices this afternoon. Apparently the market is betting that inflation will continue to decline, which would be in line with recent speculation that interest rates in the USA will soon fall. The data is considered relevant with regard to the US Federal Reserve’s further monetary policy course, which it will decide on on Wednesday.
The yen is also making up ground against the dollar. He had given in the previous day amid reports that the Japanese central bank was in no hurry to abandon its ultra-loose monetary policy stance. Recent statements by the head of the central bank and his deputy had been interpreted differently.
+++++ FINANCIAL MARKETS EAST ASIA +++++
Slightly firmer – Positive guidance from US stock markets encouraged investors to buy, traders said. However, investors did not venture too far out of cover because of US consumer prices due later in the day and the US Federal Reserve meeting on Wednesday. Hopes for economic stimulus gave Chinese stock markets some momentum. According to media reports, representatives of the Chinese government will meet on Tuesday to discuss growth targets for the domestic economy. Stocks in the struggling real estate sector particularly benefited from this. In Hong Kong, Country Garden gained 9.6 percent and Poly Property gained 3.3 percent.
+++++ CREDIT +++++
The risk premiums on the European credit market remain virtually unchanged. Investors are awaiting the announcement of US consumer prices, which could be highly relevant to the Federal Reserve’s upcoming monetary policy decision on Wednesday.
+++++ COMPANY NEWS SINCE 7.30 AM +++++
CONTINENTAL
The rating agency Fitch sees no reason to change the BBB credit rating after the capital market day with a stable outlook.
HANNOVER RÜCK
is planning for 2024 with a net result of at least 2.1 billion euros. That would be 24 percent more than the profit forecast for this year of at least 1.7 billion euros. Shareholders could also expect continued dividend growth.
RHEINMETALL
is to comprehensively modernize existing Skyguard air defense systems in Austria – net order volume of 532 million euros.
VW
The US union United Auto Workers is accused of anti-union activities in a US factory. Managers at the Chattanooga plant allegedly suppressed talks about unionization through harassment and threats.
AURUBIS
is making further investments worth millions at the Hamburg site: The supervisory board approved two new projects for the northern German plant worth 330 million euros.
GEA
wants to reduce its own greenhouse gas emissions by 60 percent by 2026 – compared to the reference year 2019 – and not just in 2030 as previously announced.
CARL ZEISS MEDITEC
earned less operationally in 2022/23 with higher sales. Sales grew by 9.8 percent to around 2.089 billion euros. In contrast, the operating result EBIT fell to 348 (397) million.
ASTRAZENECA
is acquiring the US biopharmaceutical company Icosavax for up to $1.1 billion. Astrazeneca wants to expand its vaccine and immunotherapy pipeline.
NOKIA
will set up a new network for Deutsche Telekom in Germany using technology that enables the use of equipment from competing providers in certain parts of the network.
NOKIA
acquires the North American Fenix Group. Nokia did not disclose financial details of the transaction.
NOKIA
(MORE TO FOLLOW) Dow Jones Newswires
December 12, 2023 06:53 ET (11:53 GMT)