market report
Status: 10/19/2022 09:37 am
After two stormy days of profits, investors on the trading floor are taking it easy today. Thanks to favorable US specifications, the DAX can still post small gains at the start of trading.
With 12,800 points at the start, the leading German index recorded growth of 0.2 percent in the morning compared to yesterday’s XETRA close. The round mark of 13,000 points remains out of reach for the DAX for the time being.
Overseas exchanges provide favorable submission
Driven by good business figures from the US investment bank Goldman Sachs, the Dow Jones index rose 1.1 percent to 30,524 points in New York yesterday. The tech-heavy Nasdaq advanced 0.9 percent to 10,772 jobs. In Asia, the Japanese Nikkei index recorded growth of 0.4 percent to 27,257 points, but the Shanghai stock exchange was down 0.3 percent.
Happy end of the year possible?
“The stock markets are going through a stormy autumn,” says a current market commentary by Landesbank Baden-Württemberg in the morning. Most recently, however, the market shook off the high level of uncertainty caused by US inflation data in the middle of the month. This “robust constitution” speaks for “a conciliatory end to the year”.
Euro is not progressing any further
In the morning, the European common currency is trading at $ 0.9830. As a result, the euro cannot move any further up on its way towards parity with the dollar.
US floods oil market
Concerns about falling fuel demand in China due to the weakening economy weighed heavily on the oil price at times yesterday. China had postponed the release of economic indicators scheduled for yesterday. On the oil market, however, investors are also looking towards the USA. The sale of 180 million barrels of crude oil (about 29 billion liters) from its own strategic reserve, announced by the government in March, is almost complete. A barrel of North Sea Brent currently costs $89.16.
Infineon back at the top of the DAX
Infineon shares can take the lead in the leading index in the morning. The stocks from Daimler Truck and Deutsche Bank are also doing better than the market as a whole. Losers in early trading included shares in pharmaceutical and chemical group Merck and biotech company Qiagen.
Sartorius cuts corners
The focus is also on the share of the laboratory equipment manufacturer Sartorius, which loses drastically in early trading. Despite cost increases and currency effects, Sartorius significantly increased sales and earnings in the first nine months. With an increase in sales of 16.6 percent to 3.1 billion euros, the operating result (Ebitda) increased by 21.4 percent to 1.05 billion euros. For the year as a whole, CEO Joachim Kreuzburg only expects sales to increase at the lower end of the forecast range of 15 to 19 percent. The operating return on sales (Ebitda margin) should remain unchanged at around 34 percent.
Strikes stop Eurowings growth
The Lufthansa subsidiary declared yesterday that the growth of the Eurowings Germany flight operation, which was on strike, would be stopped because of “massive strike damage”. In 2023, no five additional aircraft are to be added to the fleet, which was actually supposed to be expanded to 81 machines. This would not create 200 new jobs in the cockpit and cabin. There are also no promotions from pilots to captains. The pilots of the holiday airline Eurowings are going on strike for the third day in a row today, despite increasing pressure from their employer.
Wintershall Dea plans CO2 storage
The BASF subsidiary is planning a carbon dioxide storage facility under the North Sea near Wilhelmshaven. The company based in Kassel and Hamburg announced this yesterday. It has signed a letter of intent with the liquid bulk tank farm HES Wilhelmshaven. The aim is to store carbon dioxide (CO2), which cannot be avoided in industry, in geological formations under the North Sea. First of all, a feasibility study by 2023 should provide information on whether the so-called CO2nnect-Now-Hub in Wilhelmshaven is possible.
Nestlé grows with Nespresso
The world’s largest food manufacturer Nestle grew strongly in the first nine months of 2022 thanks to price increases. Despite inflation, pet food, Nespresso capsules and sweets were still in demand with customers. Nestle’s turnover from January to September was CHF 69.1 billion. Organically, i.e. excluding acquisitions and exchange rate changes, the increase was 8.5 percent. This is made up of price increases of 7.5 percent and volume increases of 1.0 percent, as Nestle announced.
ASML with record orders
Dutch chip supplier ASML performed better than expected in the third quarter and has record orders in the order books. With sales of 5.8 billion euros, the group achieved a quarterly profit of 1.7 billion euros, exceeding analyst estimates. Incoming orders reached 8.9 billion euros. Despite the weakness of the end market for memory chips, “the demand for our systems as a whole is still strong,” says company boss Peter Wennink. He does not expect the US sanctions on Chinese technology companies to have a major impact on ASML.
Netflix stops downtrend
On the US stock market, the new business figures for the video streaming service Netflix were greeted with drastic price gains yesterday. Netflix performed much better than expected in the third quarter thanks to successful series. In the quarter to the end of September, the streaming giant booked a total of 2.4 million new paid subscriptions. Netflix thus achieved user growth of 4.5 percent year-on-year and significantly exceeded both its own forecast of one million new customers and that of the financial market.