Thursday, May 12, 2022 at 12.20
European equities were lower on Thursday due to fears of continued inflation, interest rate rises and economic downturn.
The broad-based STOXX Europe 600 index fell 2.2 percent to 418.30 points on Thursday around 1 p.m. The German DAX fell 2.3 percent to 13,511.67 points. The French CAC 40 recorded a minus of 2.6 percent with a position of 6,109.98 points. The British FTSE 100 lost 2.5 percent on Thursday to 7,164.77 points.
A higher-than-expected inflation figure in the US on Wednesday created further panic in the already severely punished stock markets. US technology in particular is not doing well, as high inflation is also leading to interest rate hikes by central banks.
“There is still a lot of uncertainty in the financial markets,” says investment manager Simon Wiersma from ING. “What will happen to inflation, how fast and how hard will central banks step on the brakes, and how will it affect economic growth?”
According to Wiersma, investors are currently fleeing to safe havens for fear of a hard landing, ie a rapid slowdown in growth. As a result, the ING expert sees tech funds and growth companies in particular under pressure.
The United Kingdom today released the country’s first growth estimate for the country’s economy for the first quarter, which came in at 0.8 percent quarter on year and 8.7 percent year on year. UK industrial production fell by 0.2 per cent in March compared to February. The trade deficit in the first quarter rose to its highest point since the British kept this figure and at £ 25.2 billion was also much higher than the expected £ 18.5 billion.
In addition to producer prices, which are estimated to rise on a monthly basis by 0.5 percent from 1.4 percent month-on-month in April, the U.S. will also look at weekly support applications on Thursday, which are expected to fall from 200,000 to 194,000.
US Treasury Secretary Janet Yellen will today report on the stability of the financial system to a designated committee in the House of Representatives.
Oil was lower on Thursday. Global demand for oil will clearly grow less rapidly in the second quarter than in the first three months of the year. This is stated by the International Energy Agency in its new monthly report on Thursday.
A June West Texas Intermediate future traded 2.5 percent down minus $ 103.05, while a July Brent future was paid $ 105.17, down 2.2 percent.
Euro / dollar is trading at 1.0437. At the start of the trading day, the currency pair moved to 1.0510, and when US markets closed on Wednesday, the plates were at 1.0519.
Lukoil has entered into an agreement to acquire Shell’s downstream activities in Russia. In addition, Berenberg raised the price target from 28.40 to 32.50 euros with a repeat of the buy recommendation. The share price of Shell was 3.3 percent lower.
Aegon made a small profit in the first quarter, apart from a strong book profit on the sale of the Hungarian branch, as the results were weighed down by losses on interest rate hedging. The stock fell 1.9 percent.
Siemens has seen its profits halve in the second quarter of its current broken fiscal year after addressing the economic consequences of its departure from Russia. The share price was 6.5 percent lower.
BP participates in tender rounds for two offshore wind farms in the Netherlands. The stock fell 3.5 percent.
In Paris and Frankfurt, a total of eight stock prices could find their way up, of which STMicroelectronics in Paris stood out with a profit of 3.3 percent. In Frankfurt, the share price of Hannover Rueck was 2.5 percent higher and Bayer 2.2 percent higher than Wednesday’s closing.
Wall Street Futures
US stocks are expected to open lower on Thursday. Futures on the S&P 500 index were down 1.1 percent.
The leading S&P 500 index fell 1.6 percent to 3,935.25 points, the Dow Jones index lost 1.0 percent to 31,834.37 points and the Nasdaq closed 3.2 percent lower at 11,364.24 points.
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