MARKETS EUROPE/Friendly – Good figures from Conti and Hannover Re

(Repetition)

DOW JONES–Europe’s stock markets got off to a friendly start to the new trading week on Monday. The mood is supported by the ongoing record hunt on Wall Street, the further fall in oil prices and bonds that are stable after the recent recovery. The reporting season is likely to receive more attention again as the week progresses. Because after US electionFedInterest rate cut and the end of the German government, market participants were only concerned with macro factors last week. Particularly in focus this week are the new US inflation data. The DAX rose by 1.3 percent to 19,445 points, the Euro-Stoxx-50 by 1.1 percent to 4,855 points.

Bonds are rising across Europe, especially Spain with an increased outlook from rating agency Fitch. However, there will be no stimulus from the USA, as the US bond market will remain closed due to the veterans holiday. The stock market is open. The 10-year US yields are currently entering the new week at 4,306 percent, below the highs around the US election date.

Lack of orders in Germany as during the financial crisis

Traders see the collapse in orders in Germany as a further argument for ECB interest rate cuts. “Especially with Trump and possible punitive tariffs on his back, something like this should help accelerate the ECB’s interest rate cutting course for Europe,” says a trader. Because the downward slide continues here. As current figures from the Ifo Institute show, more and more companies are complaining about a lack of orders. In October, 41.5 percent of companies reported a lack of orders, compared to 39.4 percent in July. This is the highest value since the financial crisis of 2009.

“The lack of orders continues to hamper economic development in Germany,” says Klaus Wohlrabe, head of the Ifo surveys. In industry, almost every second company (47.7 percent) reported a lack of orders.

Conti and Hannover delight with their numbers

The company data presented predominantly good figures. In the automotive industry, tire manufacturer figures continue. In Japan, Bridgestone presented data with lights and shadows. At Continental in the DAX, however, profit expectations were exceeded in the third quarter, and sales expectations for the full year were only slightly reduced, as expected. The higher margins were a positive surprise in trading, and shares shot up by 7.5 percent.

Although Hannover Re did not meet the forecasts in all key figures, the combined ratio was still slightly better than expected at just 88 percent. Here too, shares rose by 3.6 percent. The group’s net profit is now around 2.3 billion euros, previously it had been assumed to be at least 2.1 billion.

Meanwhile, the steel manufacturer Salzgitter went deep into the red, with stocks losing 1.4 percent.

BASF recovered strongly by 3 percent, MTU rose by 3.4 percent. Goldman Sachs has issued a buy recommendation for both. Heidelberg Materials benefits from increased price targets from JP Morgan and Metzler, among others, and gains 2.4 percent.

===

Stock index last +/-% absolute +/-% YTD

Euro Stoxx 50 4,854.61 +1.1% 51.85 +7.4%

Stoxx-50 4,333.06 +1.1% 46.06 +5.9%

DAX 19,445.38 +1.2% 229.90 +16.1%

MDAX 26,939.49 +1.3% 348.64 -0.7%

TecDAX 3,416.32 +1.0% 35.03 +2.4%

SDAX 13,551.50 +1.3% 168.25 -2.9%

FTSE 8,135.26 +0.8% 62.87 +4.4%

CAC 7,423.15 +1.2% 84.48 -1.6%

Bond market last absolute +/- YTD

German ten-year return 2.33 -0.03 -0.24

US ten-year yield 4.31 0 +0.43

FOREX last +/- % Mon 7:35 am Fri 5:20 pm % YTD

EUR/USD 1.0680 -0.3% 1.0716 1.0733 -3.3%

EUR/JPY 164.27 +0.5% 164.50 163.79 +5.6%

EUR/CHF 0.9386 +0.0% 0.9397 0.9382 +1.2%

EUR/GBP 0.8286 -0.1% 0.8297 0.8301 -4.5%

USD/JPY 153.80 +0.7% 153.53 152.63 +9.2%

GBP/USD 1.2889 -0.2% 1.2915 1.2929 +1.3%

USD/CNH (Offshore) 7.2096 +0.1% 7.2008 7.1963 +1.2%

Bitcoin

BTC/USD 81,194.85 +0.5% 81,271.75 76,390.75 +86.5%

ROHOEL most recently VT-Settlem. +/-% +/- USD% YTD

WTI/Nymex 70.29 70.38 -0.1% -0.09 -0.6%

Brent/ICE 74.00 73.87 +0.2% +0.13 -0.9%

GAS VT billing. +/- EUR

Dutch TTF 43,025 42.07 +2.3% +0.95 +10.7%

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

Gold (Spot) 2,668.18 2,684.32 -0.6% -16.15 +29.4%

Silver (spot) 31.26 31.31 -0.1% -0.05 +31.5%

Platinum (spot) 983.85 971.95 +1.2% +11.90 -0.8%

Copper future 4.30 4.31 -0.2% -0.01 +8.8%

YTD based on the previous day’s closing level

===

DJG/mod/cln

(END) Dow Jones Newswires

November 11, 2024 03:36 ET (08:36 GMT)