market report
Status: 08/10/2022 08:12 a.m
The stock markets are still very nervous ahead of important inflation data from the USA. After rather weak specifications from the USA and Asia, German stock exchange trading should start again in the red.
According to pre-market indications, the DAX will start trading just above the 13,500 point mark in the middle of the week, which would be a minus of 0.2 percent compared to yesterday’s XETRA close. The momentum of the past week seems to have flagged on the stock markets.
US consumer prices set the course
That could change in the afternoon when July consumer price data is released in the US. A strong rate of inflation would fuel concerns that the Federal Reserve will make larger rate hikes. On the stock market, investors are hoping that inflationary pressure will ease. A survey by the New York Federal Reserve on Monday shows that consumer inflation expectations fell sharply in July. “This is music to the Fed’s ears, because if this trend continues, it means that the Fed no longer has to raise rates as aggressively,” said Deutsche Bank analysts.
Wall Street charged
Wall Street’s specifications for German retail are rather negative. Technology stocks in particular came under pressure after memory chip maker Micron Technology lowered its sales forecast for the fourth quarter. The Dow Jones index of standard values closed 0.2 percent lighter at 32,774 points. The broader S&P 500 fell 0.4 percent to 4122 points. The index of the technology exchange Nasdaq lost 1.2 percent to 12,403 jobs.
Asian stock exchanges in the red
Asian trading in the morning is also characterized by losses. The Japanese Nikkei index was 0.7 percent lower at 27,815 points. The broader Topix index fell 0.3 percent to 1,932 points. The Shanghai stock exchange was down 0.2 percent. The index of the most important companies in Shanghai and Shenzhen lost 0.5 percent.
euros in anticipation
On the foreign exchange market, the euro remains above the 1.02 dollar mark. The European common currency is currently trading at $1.0220. The development of consumer prices and the assessment of investors regarding the further interest rate policy of the US central bank should also cause movement here in the afternoon. On the commodity market, the price changes in the morning are limited. The oil price has hardly changed compared to the previous day. A barrel of North Sea Brent in the morning costs $95.10. The price of a troy ounce of gold fell slightly to $1790.
E.ON passes on high electricity prices
From the company side, investors can again deal with a number of business figures from the DAX and the other indices in the morning. The energy company E.ON already presented its balance sheet for the second quarter in the morning. The group’s adjusted earnings (via Ebitda) fell by 15 percent to 4.1 billion euros. Consolidated net income fell by a fifth to 1.4 billion euros. Unlike in the first quarter, Eon was now able to pass on part of its increased costs to customers. As a result, however, this will only become fully visible in the second half of the year, according to the company.
Evonik increases prognosis
The specialty chemicals group Evonik increased its operating result (Ebitda) from 649 to 728 million euros in the second quarter. Sales climbed 31 percent to 4.77 billion euros. Thanks to higher sales prices for its products, Evonik increased its sales target for the full year and now aims to achieve sales of between 17 and 18 billion euros – the previous figure was 15.5 to 16.5 billion euros. This is “mainly due to price increases offsetting higher variable costs.”
LEG deserves more
Thanks to acquisitions, the housing group LEG Immobilien increased its operating result (FFO I) by 5.2 percent to EUR 120 million in the second quarter. LEG CEO Lars von Lackum confirmed his profit forecast for the year as a whole: For 2022, the company expects FFO I to be in the range of EUR 475 to 490 million. Last year, LEG took over around 15,400 apartments from the ailing Adler Group with a regional focus on Lower Saxony, Bremen and Schleswig-Holstein for almost 1.3 billion euros.
Billions lost at crypto exchange
The largest US crypto exchange Coinbase has fallen deep into the red in view of the price slide in digital currencies such as Bitcoin and Ether. In the second quarter there was a loss of 1.1 billion dollars. A year ago, the trading platform had made a profit of $ 1.6 billion. High write-downs on investments now weighed heavily on Coinbase. In the most recent quarter, revenues fell compared to the previous year by more than 60 percent to 808 million dollars. The stock fell 5 percent in after-hours trading. The figures fell short of already dampened expectations.