Losses — indices are in the red zone
The week ended with a sale. DAX finished the week 2.8% lower than the last Monday’s opening price, EURO STOXX 50 is 2.5% in minus, while Dow Jones (us 30) is 4% lower.
The reason is fairly obvious — the overall popularity decline provoked by the FED key rate increase followed by the world’s biggest central banks. That may lead to sales this week as well.
Last trading session leaders and outsiders:
DAX:
Top: Continental AG +0.72%, Vonovia SE +0.41%, Allianz SE +0.37%
Flop: Deutsche Post AG -6.26%, Adyen -4.97%, Kering S.A. -4.24%
EURO STOXX 50:
Top: KONE Corp. (New) Cl.B +4.93%, Intesa Sanpaolo S.p.A. +1.58%, IBERDROLA S.A +1.39%
Flop: Sartorius AG Vz -7.68%, Deutsche Post AG -6.58%, Siemens Energy AG -5.57%
Dow Jones (us 30):
Top: Johnson & Johnson +0.62%, Verizon Communications Inc.0.12%,
Flop: Boeing Co. -5.34%, salesforce.com Inc. -3.87%, The Walt Disney Company -3.68%
Among all the securities included in the above indices only KONE Corp. (New) Cl.B grew 2%. Meanwhile 27 out of 30 securities from Dow Jones (us 30) ended up in losses. This once again indicates the overall market mood and not some individual issuer problems.
Bonds market:
On Friday, September the 16th there haven’t been any major changes with the European bond market. Nevertheless, pay your attention to a moderate 10-year yields profitability reduction with almost all the EU countries. The overall dynamics is remaining ascending. The same with the American bonds. On Friday we saw some growth, however the trend is firmly bullish.
Oil market
In general the last week was fairly calm for oil market. However, both European Brent and his American counterpart WTI ended the session with insignificant losses. What’s more important is the long term prospect. It will majorly depend on two key factors: global oil demand and supply.
Speaking about the demand, it is vitally important to consider the pace of the world economy. It is an obvious drawback for buyers, especially if you pay extra attention to China’s recent COVID-19 policy and FED increasing the key rates.
Supply. There are 2 or even 3 key players here. OPEC – their policy change is the main factor influencing the oil price. And of course presence or absence of such major players of the world’s oil industry as Russia and Iran.
This week’s key events
As you might understand, this week we need to concentrate on the FED’s head report regarding the key rates. By the week’s end the focus will be shifted to business activity in the EU and the USA.
Economists predict a 50 point PMI index reduction in France’s manufacture sector. This index may also drop down in Germany and throughout the all of the EU zone. Considering the above, there’s a risk there’ll be sales from the Europe’s manufacture companies.
