market report
Status: 06/28/2022 07:40 a.m
Wall Street’s weak guidance is making investors cautious. For now, at least, the recent recovery has lost momentum.
The DAX is likely to give way a bit at the start of trading today. Before the start of trading, broker IG rated it 0.2 percent lower at 13,162 points. The leading German index went out of trading yesterday with a premium of 0.5 percent to 13,186 points. It peaked at 13,378 points before investors took profits.
Lots of negatives already priced in
Market participants expect that the large price fluctuations on the stock markets will continue. Volatility is likely to remain high until there are clear signs that inflation is easing, recession risks are receding and geopolitical threats are diminishing, said Mark Haefele, chief investor at UBS Asset Management.
Craig Erlam, market analyst at broker Oanda, notes that with so much monetary tightening and economic pessimism already priced in, it shouldn’t be too long before equity markets start to pick up momentum again.
Wall Street in reverse
Some US investors cashed in yesterday after last week’s recovery rally. The Dow Jones closed 0.2 percent lower at 31,438 points. The Nasdaq fell 0.7 percent to 11,524 points after gaining 7.5 percent last week. The broad S&P 500 lost 0.3 percent to 3900 points.
Asian equity markets were generally benign today. MSCI’s main index of Asia-Pacific stocks outside Japan rose 1.65 percent, while Japan’s leading index, the Nikkei 225, just about held the previous day’s level. The Australian leading index made up 0.33 percent.
Siemens Healthineers wants to buy back shares
The medical technology group Siemens Healthineers wants to buy back its own shares for up to 250 million euros. The money is to be used to purchase up to nine million shares for share-based remuneration or employee share programs. The buyback is scheduled to begin on Wednesday and last until January 20 at the latest.
Nike’s European business is thriving
Nike surpassed experts’ expectations in terms of sales in the fourth fiscal quarter. The Adidas competitor put the proceeds at 12.23 billion dollars, which corresponds to a decrease of one percent compared to the previous year. In Europe, Middle East and Africa, sales increased 9 percent to $3.25 billion on strong demand for apparel and footwear. In Greater China, on the other hand, they fell by 19 percent due to the corona lockdowns.
Net income fell to $1.44 billion from $1.51 billion a year earlier. Nike will buy back $18 billion of stock.
Crypto exchange FTX mulls acquisition of online broker Robinhood
According to a media report, the crypto exchange FTX is considering taking over the online broker Robinhood Markets. FTX is advising internally whether an acquisition is possible, reports the Bloomberg agency, citing people familiar with the matter. Robinhood has not yet received an official offer. Robinhood declined to comment on it. It was announced last month that the head of crypto exchange FTX had increased his stake in Robinhood. Robinhood became known as part of the course capers at the US video game retailer GameStop.
US banks increase share buybacks and dividends after stress test
After passing the Fed’s stress test, the first major US financial institutions presented new plans for distributing capital to their shareholders. Morgan Stanley yesterday announced up to $20 billion in share buybacks and an increase in its quarterly dividend from 70 to 77.5 cents a share. Rivals Bank of America, Goldman Sachs, State Street and Trust Financial also said they would raise their dividends.