market report
Status: 08/10/2022 4:20 p.m
The still high inflation in the United States weakened somewhat in July. That’s enough to give the stock markets a strong boost in the afternoon.
The US consumer price data released at 2:30 p.m. German time was to the liking of investors. At 8.5 percent, the annual inflation rate in July was still alarmingly high, but below expectations of 8.7 percent and below the June figure of 9.1 percent, which had provisionally marked the highest level in 40 years.
That tends to take some pressure off the US Federal Reserve (Fed) to aggressively raise interest rates. That was enough to lift the DAX to a daily high of 13,697 points so far, an increase of up to 1.2 percent.
Wall Street starts euphorically
The wall also opened significantly higher an hour after the data was announced, and the Dow Jones has meanwhile expanded its plus to 1.6 percent. In fact, the majority of market participants in the US are now expecting interest rates to rise again by “only” half a percentage point when the Fed meets at the end of September.
Whether the market’s euphoria can be maintained until then will probably depend more on company data from now on.
Inflation in Germany at 7.5 percent
German inflation also weakened slightly in July. Consumer prices rose by 7.5 percent compared to the same month last year, as the Federal Statistical Office in Wiesbaden announced in the morning. The authority thus confirmed its first estimates from the end of July. Inflation was again driven by energy and food prices.
Euro shoots up
The US inflation data also caused sharp price movements on the foreign exchange market. The euro shot up by over a cent at times and is currently trading at $1.0320. Oil prices are on the decline. A barrel of North Sea Brent costs $94.50 in the early afternoon. The price of a troy ounce of gold rose more sharply at times and has now fallen back to $179 an hour.
China concerns at Adidas
Papers from the sporting goods group Adidas were at times one of the biggest price losers. Adidas boss Kasper Rorsted had a longer-term in an interview Failure of China as a growth market for the company presented as possible. This would also call into question Adidas’ sales and profit targets for the years up to 2025.
E.ON with a decline in earnings
E.ON shares are at the end of the DAX. The energy supplier’s adjusted earnings fell by 15 percent to 4.1 billion euros in the second quarter. Consolidated net income fell by a fifth to 1.4 billion euros. Unlike in the first quarter, E.ON was now able to pass on part of its increased costs to customers. As a result, however, this will only become fully visible in the second half of the year, according to the company.
Heidelberger Druck in demand
A strong increase in earnings in the past quarter is driving the shares of Heidelberger Druck up in double digits. In addition to the operating result, incoming orders and sales also exceeded estimates in advance, said a dealer. In the past first quarter of the business year, sales rose by a fifth to 530 million euros, earnings before interest, taxes, depreciation and amortization (Ebitda) amounted to 35 million euros, which corresponds to a doubling.
Jenoptik have Forecast an
Jenoptik papers are also in demand. After a strong second quarter and thanks to well-filled order books, the technology group is more confident about the year as a whole and is targeting sales of between 930 and 960 million euros. In the second quarter, sales rose by a third year-on-year to EUR 239 million. The Group continued to benefit from the high demand from the semiconductor industry. The bottom line, however, was that profits fell by around 32 percent to 22.5 million euros due to higher costs.
HHLA benefits from inventory income
The logistics group HHLA continues to benefit from high income from stored containers. The so-called storage fee revenue ensured growth in sales and earnings. In the first half of the year, revenues rose by almost ten percent to almost 780 million euros. Earnings before interest and taxes (EBIT) of 101.3 million euros were almost twelve percent more than last year. HHLA now expects container throughput in 2022 to be at the level of the previous year, whereas a moderate increase was previously expected.
TUI reaches pre-crisis level
Despite the bottlenecks at many airports this summer, the world’s largest travel group, TUI, expects the number of holidaymakers to be close to the pre-crisis level. Currently, bookings have reached 11.5 million guests, around 90 percent of the 2019 level, the company said. In the third business quarter to the end of June, sales increased from 650 million to 4.4 billion euros compared to the same period of the previous year, which was affected by the pandemic. Because the group had to shoulder special costs of 75 million euros due to flight cancellations and delays, especially in Great Britain, the adjusted operating result was still negative at 27 million.
Vestas suffers from high costs
High costs for raw materials and logistics as well as material bottlenecks continued to weigh heavily on the Danish wind turbine manufacturer Vestas in the second quarter. The turnover of the competitor from Nordex and Siemens Gamesa fell by seven percent to 3.3 billion euros in the second quarter. The operating loss before interest and taxes and special items amounted to 182 million euros. The net loss was 119 million euros. A year ago it was still a profit of 83 million euros.
Musk is selling Tesla stock
Tesla-Chef Elon Musk hat Shares in the US electric car maker sold worth billions and wants to prepare for a possible defeat in the legal dispute over the Twitter takeover. Musk sold shares worth $ 6.9 billion, according to reports to the US Securities and Exchange Commission on Tuesday (local time). This is his biggest share sale in the company ever. Musk is in a legal battle with the short message service because he wants to call off the $44 billion takeover of the service.