MIDDAY BRIEFING – Companies and Markets
The Midday Market Review, compiled by Dow Jones Newswires:
+++++ HOLIDAY NOTICE +++++
THURSDAY: The US bond market will be closed for the Veterans Day holiday.
+++++ EQUITY AND BOND MARKETS (1:12 p.m.) +++++
INDEX Stand +-% +-% YTD
E-Mini-Future S&P-500 4.659,25 +0,4% +25,4%
E-Mini-Future Nasdaq-100 16.085,00 +0,7% +25,1%
Euro Stoxx-50 4,348.02 -0.0% +22.4%
Stoxx-50 3.765,27 +0,1% +21,1%
DAX 16.086,12 +0,1% +17,3%
FTSE 7,372.77 + 0.4% + 13.6%
CAC 7,051.82 +0.1% +27.0%
Nikkei-225 29.277,86 +0,6% +6,7%
EUREX status +/- points
Bund-Future 170,76 +0,07
+++++ RAW MATERIAL MARKETS +++++
ROHÖL last VT-Settl. +/-% +/- USD% YTD
WTI/Nymex 80,75 81,34 -0,7% -0,59 +69,4%
Brent/ICE 81,99 82,64 -0,8% -0,65 +62,0%
METALS last previous day +/-% +/- USD% YTD
Gold (Spot) 1.861,28 1.849,55 +0,6% +11,73 -1,9%
Silver (spot) 24.92 24.63 + 1.2% + 0.30 -5.6%
Platinum (Spot) 1.084.75 1.071.04 +1.3% +13.71 +1.3%
Kupfer-Future 4,38 4,32 +1,2% +0,05 +24,2%
Oil prices continue to decline, even if the pace has slowed compared to the previous day. The firm dollar, which makes oil more expensive for buyers from the non-dollar area, continues to weigh on this.
+++++ OUTLOOK EQUITIES USA +++++
Wall Street is likely to start trading on Thursday with surcharges and thus recover somewhat from the previous day’s heavy losses. Inflation, which was above the 6 percent mark for the first time in 31 years, scared the market midweek. At first, however, the data seem to take a back seat. Even weak quarterly figures from Disney and Beyond Meat do not weigh on sentiment. However, the volumes could also be a little lower because of the veterans holiday. There is no trading in the US bond market. Disney shares are down 4.8 percent. The US entertainment group missed market expectations in terms of earnings and sales in the fourth fiscal quarter. Beyond Meat buckle by 20 percent. The manufacturer of vegan meat alternatives also disappointed with the results for the third quarter. The outlook for the fourth quarter also fell short of the forecasts.
+++++ OUTLOOK COMPANIES +++++
The following companies publish business figures later in the day:
14:00 DE / Daimler Truck Holding AG, Capital Markets (virtual)
17:50 IT / Pirelli & C. SpA, result 9 months, Milan
18:00 DE / Deutsche Euroshop AG, result 9 months, Hamburg
+++++ ECONOMIC OUTLOOK ++++++
There are no important dates to be published.
+++++ FINANCIAL MARKETS EUROPE +++++
Hardly changed – the DAX initially set a new record high at 16,115 points in early trading, but was unable to maintain it. “This will continue to defend the rally level,” says Commerzbank analyst Achim Matzke. While pressure from bond markets has increased after the recent high US inflation data, the firm dollar is supporting sentiment. In Europe, construction companies (+ 1.3%) and commodity stocks (+ 2.9%) are on the winning side. In contrast, the shares of the travel industry (-1.1%) are falling. The concern about new corona restrictions is pressing here. In addition, the reporting season makes the courses again. For Siemens, it’s 2.7 percent up. The ongoing economic recovery has meant that everything is running smoothly, especially in the industrial business, they say. The bottom line was that almost all key figures exceeded expectations. Delivery Heroes increase by 2.9 percent. The 2021 annual forecast for GMV and total segment sales has been increased to the upper end of the previous range. The numbers and outlook from RWE are also received positively. The course is still 0.1 percent. The utility has not increased the outlook any further despite the sharp rise in energy prices.
+++++ FOREIGN EXCHANGE +++++
Forex last +/-% Thu, 7:50 a.m. Wed, 5:16 p.m.% YTD
EUR/USD 1,1474 -0,1% 1,1482 1,1528 -6,1%
EUR/JPY 130,72 -0,0% 130,81 131,31 +3,7%
EUR/CHF 1,0562 +0,2% 1,0545 1,0558 -2,3%
EUR/GBP 0,8560 -0,0% 0,8552 0,8543 -4,2%
USD/JPY 113,93 +0,0% 113,93 113,90 +10,3%
GBP/USD 1,3403 -0,0% 1,3426 1,3490 -1,9%
USD/CNH (Offshore) 6,3936 -0,1% 6,4034 6,3932 -1,7%
BTC/USD 64,833.76 -0.5% 64,844.23 68,364.26 +123.2%
After the surprisingly high US inflation rate from the previous day, the dollar continues to climb, hitting a 15-month high. The market is pricing in a higher probability of interest rate hikes in the coming year, it says. Immediately after the data was released, the dollar barely benefited. Only after the futures markets had reflected a higher probability of an initial rate hike by the US Federal Reserve between June and September 2022 did the US currency also rise, notes Unicredit.
+++++ FINANCIAL MARKETS EAST ASIA +++++
The specter of inflation and, in tow, concerns about higher interest rates slowed the stock markets in Asia and Australia on Thursday. After the upward surge in inflation in China the previous day, consumer prices rose more sharply than expected from the USA. Nonetheless, no clear stock market trend prevailed in Asia, but at least a recovery from the daily lows in late trading. On the other hand, a surprising rapprochement between the USA and China provided a somewhat positive tailwind on climate issues – especially on the Chinese stock exchanges. Share prices rose the most in China, with the leading index in Shanghai gaining 1.2 percent. Property stocks were firm after Beijing considered easing restrictions on the sector. In addition, the crisis group China Evergrande made some payments due at the last minute. The stock gained 6.3 percent in late business in Hong Kong. The Nikkei-225 was fueled by premiums in the banking sector. Should high inflation lead to higher interest rates, banks would be the beneficiaries. In South Korea, on the other hand, fears about interest rates led to discounts in technology, Internet and automotive stocks.
+++++ CREDIT +++++
The credit indices of the European credit insurers against the failure of bonds on Thursday remain almost unchanged. This means that the high US inflation cannot set any accents either. As feared, the annual inflation rate rose more clearly than expected to 6.2 percent and thus above the 6 percent mark. The market responded by adjusting the key rate path: the third rate hike is now expected for the Fed meeting on February 1, 2023 – after a first step on June 15 next year and a second on November 2.
+++++ COMPANY NOTIFICATIONS FROM 7.30 AM +++++
The Danish power producer Orsted secures a good fifth of the amount of electricity that its planned offshore wind farm off the North Sea island of Borkum is to produce from 2025. The chemical company concluded a 25-year electricity supply contract with Orsted. 186 of the total planned 900 megawatts of power are to be purchased.
has parted with the entire stake in the Renault auto company. The approximately 9.2 million shares were sold to institutional investors for around 305 million euros. Nothing should change in the operational cooperation between the two companies.
has once again become more optimistic for the year as a whole after strong growth in the third quarter. The group is now aiming for a gross merchandise value (GMV) at the upper end of the range of 33 and 35 billion euros, including the acquired Korean delivery service Woowa in 2021. Sales should also land at the upper end of the range of 6.4 to 6.7 billion euros.
benefited in the third quarter from very strong operations in the Life Science division, which manufactures substances for pharmaceuticals and Covid-19 vaccines. This area contributed a good 44 percent to group sales. But the cancer drug Bavencio and the drug Mavenclad for the treatment of relapsing multiple sclerosis (MS) as well as the semiconductor business also contributed to growth.
prepares the separation of two further group units with peripheral businesses. Siemens Large Drives, the leading manufacturer of motors and converters according to its own statements, is to be legally spun off, CEO Roland Busch confirmed earlier press reports at the annual press conference.
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November 11, 2021 07:16 ET (12:16 GMT)