Investors in Europe ran out of risk at the start of the US Federal Reserve’s two-day meeting on Tuesday. In view of the expected further hike in interest rates by the Fed, the gas crisis and the gloomy outlook from the world’s largest retailer Walmart, investors preferred to hold back. “It could be the reporting season of profit warnings and forecast cuts,” said Jürgen Molnar of brokerage house Robomarkets. Of the dax ended trading almost a percent lower at 13,099 points.
Europe’s retailers in particular came under pressure after Walmart warned of falling profits. As gas and food prices have soared, shoppers have been reluctant to purchase clothing, household goods and other home appliances, leaving retailers with mountains of inventory. The US giant must therefore offer high price discounts and therefore expects eleven to 13 percent less profit for the year as a whole. The bleak outlook also caused investors to steer clear of Europe’s retailers. The online fashion retailer Zalando brought up the rear in the Dax with minus 9.8 percent. The Swedish fashion retailer H&M lost almost six percent. In US trading, Walmart shares lost 7.6 percent.
Stratec presented business figures from the S-Dax. The diagnostics specialist recorded a decline in sales and earnings in the first half of the year. Supply chain problems, higher costs and a strong development in the previous year due to the pandemic were the reasons for this. The papers fell by twelve percent. The personnel service provider Amadeus Fire benefited from the shortage of skilled workers. In the first half of the year, the personnel services segment grew by almost a quarter, while sales in the training segment fell. Management confirmed the forecast for the current year. That didn’t help the share price, which fell by eight percent.
At the European level, investors grabbed Unilever shares, which rose by three percent. The consumer goods giant raised its full-year sales guidance after raising prices to counter rising costs.
The leading index went down on Wall Street Dow Jones 0.7 percent lower from the trading session.