MARKETS EUROPE/German yield at the highest level in eleven years | news

MARKETS EUROPE/German yield at the highest level in eleven years |  news

By Herbert Rude

FRANKFURT (Dow Jones) — An unexpectedly sharp rise in US producer prices continued to depress prices on European stock exchanges on Wednesday. The DAX fell by 0.4 percent to 12,172 points, the Euro Stoxx 50 fell by 0.3 percent to 3,332 points. The reaction on the bond markets in particular weighed on the mood: yields on 10-year Bunds rose at times to their highest level since 2011.

“Without a strong recovery in bonds, however, a thorough reversal in equities is hardly imaginable,” said one market participant. The stock market has recently looked at bond yields like a rabbit at a snake.

“The expectation of a large US interest rate hike of 75 basis points in November should now increase further,” said one market participant with a view to US producer prices. A pause or even an end to the rate hike cycle is not yet in sight, he said. However, the harder the Fed fights inflation, the faster the fight can be won.

US producer prices rose 0.4 percent in September, twice as fast as expected. Contrary to hopes, the core rate did not fall below expectations either, with an increase of 0.3 percent. The yield on 10-year US bonds temporarily rose to 3.95 percent. “The question is whether the 4 percent mark will fall or hold,” said one market participant. The euro was almost unchanged at $0.97.

BASF numbers up – real estate stocks very weak

In the DAX, BASF rose by 1.6 percent. The market was relieved by the interim report. On the one hand, the adjusted EBIT of 1.35 billion euros is 50 million euros above the consensus. On the other hand, the chemical company has confirmed its outlook, which means that the profit warning feared by some has not materialized. In addition, Bayer and Covestro also rose by 1.6 percent in the DAX.

On the other hand, real estate values ​​were under severe pressure. Vonovia lost 5.5 percent and fell to its lowest level in eight years. LEG Immobilien fell 6.3 percent in the second row, and TAG Immobilien collapsed 13 percent. “Real estate values ​​are simply out in an environment of rising interest rates, prices that are already falling in some cases, canceled construction projects and material shortages,” said one market participant.

In the DAX, Brenntag fell by a further 3 percent. Siemens Healthineers was also under pressure, which collapsed by 4.8 percent in the wake of weak numbers from Philips.

Gerresheimer’s figures for the third quarter were classified as “solid” (+2.7%). While the increase in sales was somewhat lower compared to the previous quarter, the adjusted operating result was convincing with an increase of 13.3 percent, according to market participants. The confirmation of the outlook completes the positive picture.

Philips warns and LVMH convinces

After a profit warning, Philips fell by 12.3 percent. The analysts at ING spoke of the second profit warning this year. The company is being impacted by ongoing supply chain issues that are impacting shipments and customer installations. The weakness is in the healthcare systems area, while the consumer business is doing well. In the wake of Philips, Siemens Healthineers became cheaper by 4.8 percent in the DAX.

New sales figures from LVMH (+1.9%) were well received. The luxury goods group was able to carry the momentum from the first half of the year and organically increased sales in the third quarter by 19 percent to 19.76 billion euros. That’s 5 percent above consensus, according to analysts at RBC. The experts spoke of a positive signal for the entire industry. Hermes gained 1.8 percent and Dior 2 percent.

Cropenergies are hawking – Klöckner & Co on a downward slide

Cropenergies achieved record sales in the second quarter and tripled its operating result, with the share rising by almost 10 percent. The steel trader Klöckner & Co, on the other hand, only expects an operating result of 16 million euros in the third quarter, well below the forecast 50 to 100 million euros. For the financial year as a whole, the company now expects around 400 instead of more than 500 million euros. The stock fell 7.7 percent.

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Index Closing Development Development Development

. was absolute in % since

. beginning of year*

Euro-Stoxx-50 3.331,53 -8,82 -0,3% -22,5%

Stoxx 50 3,344.87 -3.39 -0.1% -12.4%

Stoxx 600 385.88 -2.07 -0.5% -20.9%

XETRA-DAX 12.172,26 -47,99 -0,4% -23,4%

FTSE-100 London 6.826,15 -59,08 -0,9% -6,8%

CAC-40 Paris 5,818.47 -14.73 -0.3% -18.7%

AEX Amsterdam 631.18 -5.13 -0.8% -20.9%

ATHEX-20 Athen 1.972,82 +23,67 +1,2% -7,9%

BEL-20 Bruessel 3.313,82 -31,49 -0,9% -23,1%

BUX Budapest 38,817.30 +98.62 +0.3% -23.5%

OMXH-25 Helsinki 4,388.63 -12.10 -0.3% -21.0%

ISE NAT. 30 Istanbul 3,843.10 -66.94 -1.7% +89.8%

OMXC-20 Kopenhagen 1.575,50 +13,98 +0,9% -15,5%

PSI 20 Lisbon 5,288.80 -98.52 -1.9% -6.8%

IBEX-35 Madrid 7,261.10 -94.80 -1.3% -16.7%

FTSE-MIB Milan 20,466.77 -263.73 -1.3% -23.5%

RTS Moscow 954.53 -10.14 -1.1% -40.2%

OBX Oslo 1,023.36 -11.29 -1.1% -4.2%

PX Prag 1.141,30 +7,37 +0,6% -20,0%

OMXS-30 Stockholm 1,834.36 +0.26 +0.0% -24.2%

WIG-20 Warsaw 1,377.19 -4.65 -0.3% -39.3%

ATX Vienna 2,684.48 -34.67 -1.3% -29.0%

SMI Zurich 10,199.32 -8.51 -0.1% -20.8%

* at the end of the day

FOREX last +/- % Wed 8:23 Wed 17:32 % YTD

EUR/USD 0,9691 -0,1% 0,9719 0,9708 -14,8%

EUR/JPY 142.38 +0.6% 142.12 142.58 +8.8%

EUR/CHF 0.9672 -0.0% 0.9677 0.9683 -6.8%

EUR/GBP 0,8740 -1,2% 0,8841 0,8766 +4,0%

USD/JPY 146,90 +0,7% 146,20 146,90 +27,6%

GBP/USD 1,1092 +1,1% 1,0990 1,1079 -18,0%

USD/CNH (Offshore) 7,1803 +0,1% 7,1632 7,1787 +13,0%

Bitcoin

BTC/USD 19.132,77 +0,7% 19.103,18 19.110,57 -58,6%

ROHOEL last VT-Settlem. +/- % +/- USD % YTD

WTI/Nymex 86,68 89,35 -3,0% -2,67 +23,2%

Brent/ICE 92,21 94,29 -2,2% -2,08 +25,3%

GAS VT-Settlem. +/- EUR

Dutch TTF 160,40 156,78 +2,3% +3,61 +137,9%

METALS last day before +/- % +/- USD % YTD

Gold (Spot) 1.668,80 1.666,10 +0,2% +2,70 -8,8%

Silver (Spot) 18.96 19.23 -1.4% -0.26 -18.7%

Platinum (Spot) 888.63 890.05 -0.2% -1.43 -8.4%

Kupfer-Future 3,43 3,47 -1,3% -0,04 -22,5%

YTD relative to previous day’s close

===

Contact the author: maerkte.de@dowjones.com

DJG/game/time

(END) Dow Jones Newswires

October 12, 2022 12:04 PM ET (4:04 PM GMT)

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