Sentiment was dampened by the fact that activity in the Chinese service sector fell again in April.
Sentiment was dampened by the fact that activity in the Chinese service sector fell again in April.
For BayernLB economists, the focus of the meeting was on assessing economic developments. It is true that the Fed verbally paid tribute to the economic slowdown in the first quarter. However, it made it clear that it regards the weak growth figures as a temporary dip in the economy and that it has therefore probably not changed its rate hike strategy for 2017. BayernLB expects two further rate hikes of 25 basis points in June and September of this year, followed by An announcement at the start of the balance sheet cut in December. For the individual stocks in the Dax, the reporting season was high on the agenda of investors. With Siemens and Adidas, two price winners of the past few months presented figures. Dealers spoke of strong numbers at Adidas, whose shares closed almost 1.5 percent firmer.
Sales and profits were once again above the forecasts in all key figures, and profits in the mid-single-digit percentage range. “However, many market participants expected that Adidas would beat expectations,” said one market participant. Adidas only confirmed the outlook, while Siemens lost 0.7 percent. Traders saw the confirmation of the targets as a brake on their course. “This is initially disappointing,” said one market participant. The figures are all comparatively good: incoming orders, sales and profit ratios are slightly above expectations. Siemens has confirmed the outlook for the margin in the industrial business of 11 to 12 percent that is okay. “With the outlook on earnings per share, one could have expected a little more,” said the dealer. Infineon’s quarterly figures were also not so well received on the stock market, with shares trending around 2 percent in the red.
The numbers were in line with expectations, which sparked profit-taking after the recent upward trend. Bayer’s recovery continued, with the share price rising about 1 percent. Traders pointed out that a court had dismissed a lawsuit over the drug Xarelto. The point was that Bayer had not pointed out any side effects related to certain bleeding. “There are more lawsuits pending,” said a trader. “The judge’s verdict could certainly have a signal effect.” The auto titles were also predominantly in demand. “Market participants are looking for car titles because they see potential there to catch up,” said Heino Ruland from Ruland Research. The P / E ratios would be between 6.2 for VW and 8.5 for BMW, compared to a 14 P / E ratio for the overall market. “That is why the car titles can now run against the fundamentals,” said Ruland.
Both in the USA and in Germany, car sales have recently tended to be weak. BMW gained 0.1 percent, VW 0.4 percent. Daimler lost 0.4 percent. Follow-up purchases made dealers responsible for the price increase of around 2.5 percent in the end at Deutz.top rated biology essay writing service
It is true that the sale of the previous Cologne-Deutz location was only a fulfillment of the previously announced intentions. “The shareholders can now expect a high special dividend,” said one dealer. Dealers at Hypoport spoke of good numbers. The fintech company had increased sales in the first quarter by 34 percent to EUR 47.7 million and EBIT by 29 percent to EUR 7 million. Hypoport prices rose by around 4 percent.
The numbers of Societe Generale in trade were described as n not quite as strong as at BNP Paribas. Net profit declined more than analysts expected. Operationally, it went well, said a trader: “The burden comes from an unusually significantly increased risk provision for the allegations of bribery in Libya,” said a trader.
SocGen stocks closed 0.8 percent higher, while Swiss Re rose 1.3 percent after the quarterly figures described as solid. “Swiss Re had reported solid results with a decent performance in the reinsurance business, only Life Capital missed the estimates,” said Baader Helvea. Wall Street showed no clear direction in the morning (local time) after it started had gone up slightly. Still: “Strong corporate balance sheets have been an important issue for some time,” said chief economist Scott Brown of financial services company Raymond James. An upturn in the global economy also creates confidence. The US Federal Reserve also held the door open for another rate hike in June, with the Dow Jones index dropping 6 points to 20,952 at the end of the day. The broader SP-500 went out of trade with an increase of just under 0.1 percent at 2389 meters.
The index of the technology exchange Nasdaq also gained around 0.1 percent to 6075 positions. For Tesla it was down 5.0 percent. The electric car maker slipped deeper into the red in the first quarter because it spent a lot more money on development than in the same period last year. Facebook gave way by 0.6 percent. The social network also grew strongly in the first quarter.
However, Facebook had already warned in the past that sales growth would weaken “considerably” towards the middle of the year. Kellogg, meanwhile, rose by 2.1 percent. Despite weak sales trends, the breakfast cereal manufacturer beat market expectations on the profit side, with the price of oil falling more and more sharply in the course of trading. A barrel (159 liters) of North Sea Brent costs $ 49.41 in the afternoon.
That was 2.7 percent less than in the middle of the week. The price of a barrel of American West Texas Intermediate (WTI) fell 2.5 percent to $ 46.48. Market observers explained the price decline with the latest data on production volumes in the USA.
The fear of an excessively high supply was a burden. As the US government announced on Wednesday, national production had increased by 0.30 percent to 9.293 million barrels of crude oil per day in the past week. This is the highest level since mid-2015. A large supply is depressing prices. The gold price also fell – with the abandonment of the 1250 support, it now also fell below the 200-day line.
The troy ounce was trading at around $ 1230, its lowest level in six weeks and 0.6 percent below its midweek level. Traders pointed out that the US Federal Reserve is unabashed by the recent weak data and is heading for a rate hike in June. However, the gold price oscillators are already on the verge of buying signals, as the market said, with the euro posting significant gains with the prospect of a Europe-friendly presidency in France. The common currency cost 1.0947 dollars in the evening.
That was only slightly less than the previous year’s high and 0.6 percent more than in the middle of the week. The dollar only temporarily benefited from the prospect of higher interest rates. The European Central Bank (ECB) set the reference rate at $ 1.0927 after $ 1.0919 on Wednesday. The equity markets in East Asia and Australia showed mostly moderate losses on Thursday.
South Korea is an exception: after price gains on 11 of the past 14 trading days, the Kospi index in Seoul had reached an all-time high. On the other hand, on the Sydney stock exchange, the SP / ASX200 fell for the third day in a row after the index last rose to a two-year high. In Tokyo, there was again no trading during the so-called Golden Week, while in Hong Kong it fell by around half a percent on Wednesday after the holiday break. HSBC rose 0.5 percent after submitting quarterly figures. In Shanghai, however, the composite barely moved.
Sentiment was dampened by the fact that activity in the Chinese service sector fell again in April. The corresponding purchasing manager index has fallen to its lowest level since May 2016, but still points to growth. Source: ntv.de, bad / kpi / DJ / rts / dpa “In the race for the premium top, Audi is lagging behind BMW and Daimler The reason for this is also the sales in China. The start of the year therefore leaves some questions unanswered, only one thing is clear. After a weaker first quarter, Audi is still on course.
As previously announced, both revenues and deliveries are expected to increase slightly in 2017. The operating return should be between 8 and 10 percent. In the first three months, the Volkswagen subsidiary and number three in the premium market had a margin within this range, but recorded a decline in sales. Sales fell by a good 6 percent to 487,434 cars, as Audi announced. The reason for this is a slump in sales in China, where the premium car manufacturer is arguing with dealers about conditions and contracts. In the future, Audi intends to bring the cars to customers there through two dealer groups instead of the previous one.
VW CFO Frank Witter said on Wednesday that they were on the right track to settle the dispute. In view of the lower sales, Audi also recorded a slight decline in sales to 14.4 billion from 14.5 billion euros. The operating profit fell to 1.24 from 1.30 billion euros. In the same period last year, however, Audi recorded a charge of 100 million euros due to recall of cars with Takata airbags. The operating return on sales fell in the first quarter to 8.7 percent from 9.0 percent. At the motorcycle manufacturer Ducati, which is part of Audi, things were also weaker at the start of the year.
Deliveries fell to 12,530 machines, a decrease of 7 percent. With a view to the motorcycle markets relevant for the brand in the displacement segment over 500 cubic centimeters, a slight decline in demand is expected for 2017, as before. There are rumors surrounding the Italian manufacturer that Volkswagen might want to sell Ducati. VW CFO Witter did not comment on the speculation about a possible sale on Wednesday. Source: ntv.de, Markus Klausen, DJ “UniCredit + SocGen?
The plans are still in an early phase. (Photo: picture alliance / Mattia Sedda /) UniCredit is Italy’s largest financial institution – and is in the middle of restructuring. A merger with a competitor is not part of it. However, bank boss Mustier is looking to France, Italy’s largest bank UniCredit is apparently playing through a merger with French competitor Societe Generale.
UniCredit boss Jean-Pierre Mustier has been dealing with the idea for several months, reported the Financial Times. Although there was no formal request, some managers at SocGen were also considering the possibility, but the plans were still in an early stage. Mustier is French and knows the rival well, having previously headed SocGen’s investment banking, SocGen said there are no board-level discussions about a merger with UniCredit.
SocGen boss Frederic Oudea said last November that cross-border deals in the European industry were unlikely in the next few quarters. The Italians did not want to comment specifically. The current restructuring plan does not contain any mergers, it just said. Italian banks were recently under pressure on the stock exchange because of the new government made up of the populist 5-star movement and the right-wing extremist Lega. Source: ntv.de, bad / rts “Whirlwind about Scout 24 – the investor Elliott puts pressure in an open letter. He urges CEO Tobias Hartmann to split off from Autoscout24. In addition, he calls for a “more ambitious” share buyback program with a debt level that is closer to the level recommended by the management itself a few months ago. According to his own statements, Elliott holds more than 7 percent and is thus one of the largest shareholders in Scout24.
The activist investor refers to various discussions with the management of Scout24. The announcement of the share buyback (for up to 300 million euros on July 19) took place just two days after such a meeting. Source: ntv.de “Speculations about a bidding competition have driven the shares of Scout24 soaring.
The stocks listed in the MDax small cap index rose by up to 6.9 percent to a four and a half month high of EUR 42.90. The online classifieds provider rejected a € 4.7 billion purchase offer from two financial investors on the grounds that the € 43.50 per share offered was too low. Analysts are now expecting a bidding contest that will increase the bids The experts at Bankhaus Lampe speculated that the financial investors were considering merging Scout24 with competitors and forging a European market leader for Internet classified ads. Source: ntv.de “Since the summer of this year there has been speculation and reports on the stock exchange that Scout24 is not averse to being bought by a financial investor. Liberum analysts see the company as an attractive takeover target.
Scout24 has a leading position in several markets, and by breaking it up, added value can be created. After the “FT” kept the delisting story simmering again and again, the analysts did not rule out a bidding contest. The price of Scout24 increases by five percent. Source: ntv.de “The prices on the world’s leading stock exchanges collapse. Memories of the turbulence after the Lehman bankruptcy are awakened.
The ongoing downturn in bank stocks is fueling additional fear. After a one-day break, financial stocks came under heavy pressure again on Thursday. On a broad front, the share prices of the entire industry plummeted – above all the papers of the French Societe Generale, which fell by 15 percent to 26.61 euros. But Deutsche Bank’s shares also fell by 7.8 percent to 13.44 euros, after gaining 10 percent on Wednesday. “We have been seeing massive sell-offs at Deutsche Bank for weeks because, in addition to the industry problems, it also has home-made worries,” says a trader. Brokers are increasingly blaming the central banks’ ultra-loose monetary policy for the development. “In such an environment, banks have an extremely difficult time making money,” said one trader.
The danger of a systemic risk is increasing as a result. For example, the financial institutions have to pay penalty interest to the ECB if they park money there overnight. The French Societe Generale also disappointed investors with a quarterly profit below expectations and the outlook. So far, the stock marketers had the French banks even less on the radar. Deutsche Bank tried to reassure investors earlier this week by stating that it could service certain bonds without any problems.
Stock marketers have now criticized that this approach only made investors more nervous. Deutsche Bank shares have lost around 40 percent since the beginning of the year – more than any other value in the leading index Dax.