Market report
Status: 07/22/2021 7:44 a.m.
At the start of trading, the positive development on Wall Street will initially support the stock market. But after that, the approaching ECB Council meeting will dominate the action on the Frankfurt trading floor.
The unofficial early trading before the actual stock exchange opening in Frankfurt indicates a friendly opening of trading. The indications of various banks on the DAX are in the range of 15,461 points and thus 0.3 percent higher than yesterday at the close of trading in electronic Xetra trading.
“All eyes on the ECB” is what Credit Suisse says today. At the monetary policy council meeting of the European Central Bank, chaired by Christine Lagarde, the main focus is on the question of how the strategic changes at the beginning of the month will affect the central bank’s specific policy. According to media reports, there is a dispute in the Central Bank Council over how this could be done. The euro is quoted in the run-up to just below the US $ 1.18 mark.
Business results drive courses
The US stock exchanges continued to rise yesterday. The leading index Dow Jones Industrial Average closed 0.8 percent higher to 34,798 points. The broad S&P 500 gained 0.8 percent to 4358 points. On the Nasdaq technology exchange, the composite index advanced 0.9 percent to 14,631 points.
The recovery in share prices continued after the crash at the beginning of the week. “As is so often the case in the summer weeks, the intensity of fluctuations on the American stock market is increasing,” wrote analyst Franz-Georg Wenner from Index Radar, referring to the recent volatile development.
There was tailwind from the quarterly figures of the two Dow members Coca-Cola and Verizon. “Everyone knows that the numbers for the second quarter bring the largest increases compared to the same period last year,” said portfolio manager Tom Martin of wealth manager Globalt Investment. The lack of alternatives and the fear of missing out on something drive investors into stocks. That’s why they used every setback to get in, says Martin.
According to the data provider Refinitiv, analysts expect an average profit increase of almost 73 percent for the companies in the S&P 500 compared to the second quarter of the previous year, which was particularly marked by the first corona lockdown.
The reawakened willingness to take risks is also noticeable on the oil market and Bitcoin. A barrel of Brent North Sea oil (159 liters) cost more than 72 dollars at times. Bitcoin at times hit more than $ 32,000.
Texas Instruments disappointed
The chip company Texas Instruments has not satisfied the markets with its sales forecast after the US stock market closed. The company expects third-quarter revenues between $ 4.40 billion and $ 4.76 billion. Thus, the Infineon rival remained below the mean value of $ 4.59 billion expected by analysts. In the second quarter, sales rose 41 percent year-on-year to $ 4.58 billion. Experts had calculated here at 4.35 billion dollars. Net income increased 40 percent to $ 1.93 billion. The TI share fell almost five percent after the trading day.
Stratec dares to do more
The diagnostics specialist Stratec is becoming more confident about the year as a whole after a strong first half of the year. The already high growth dynamic in the first months of 2021 increased again slightly in the second quarter, the group announced. The company is therefore now anticipating currency-adjusted sales growth of at least twelve percent in 2021. Previously, Stratec had promised growth at least in the high single-digit percentage range.
Corona tests help Roche
The Swiss pharmaceutical company Roche is benefiting from the continued high demand for corona tests. In the first half of the year sales climbed by five percent to 30.7 billion Swiss francs. At constant exchange rates, there was an increase of eight percent. After a weak first quarter, the pharmaceutical business also returned to growth; Roche was able to record strong growth above all with new drugs. Group profit fell by three percent to 8.2 billion Swiss francs due to the strong Swiss franc; adjusted for currency effects, it rose by two percent.