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Frankfurt – 09/11/2021
Ahead of new price data, US investors pulled out of the market today and took profits. This puts an end to the record-breaking streak on the New York Stock Exchange for the time being.
Ahead of the US consumer price data due in midweek, investors are taking profits, as inflation has been one of the main topics on the stock market for some time, but it has recently been shoved into the background by the encouraging reporting season. Producer prices, which are considered a leading indicator for inflation, were unusually high today.
Bitcoin and co. once again stole the show today. Once again, new records have been set, and the euphoria now seems to be gaining momentum.
US Markets at a glance
The Dow Jones suffered losses and went into the evening with a loss of 0.31 per cent at 36,320.50 points. The NASDAQ Composite tech index also closed in the red, losing 0.60 per cent to 15,886.54 index points.
US producer prices for the month of October were published before the stock market opened. The US Department of Labour reported a noticeable increase of 0.4 per cent, excluding food and energy. Tomorrow, Wednesday, consumer prices will be released.
In addition, the reporting season continued to pick up speed. BioNTech and Palantir, among others, presented figures in the pre-market, followed by Ballard Power later in the day.
Against today’s trend, the share of Siemens rival General Electric rose by a good 2.6 per cent. The company wants to split its medical technology, aviation and energy business into three separate companies. All three companies are to be listed on the stock exchange. The highly indebted company is thus undertaking a new restructuring.
Far East Markets at a glance
The markets in the Far East were mixed on Tuesday. In Japan, the Nikkei index lost 0.75 per cent to 29,285.46 points. On the Shanghai stock exchange, the Shanghai Composite gained 0.24 per cent to 3,507.00 index points, and the Hang Seng climbed 0.20 per cent to 24,813.13 units.
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After opening with gains, the Asian markets quickly went downhill at times before the indices in Shanghai and Hong Kong managed to jump back into positive territory. The ongoing reporting season continued to dominate events.
European Markets at a glance
The EuroSTOXX 50 moved in a narrow range and finally ended the session 0.18 per cent lower at 4,344.63 units.
The DAX fell slightly at the sound of the starting bell. As the day progressed, it traded in the profit zone and at times even climbed to a new high of 16,104.13 units. Most recently, however, it fell back to the zero line, where it also ended the trading day 0.04 per cent lower at 16,040.47 points. After a weak performance, the TecDAX ultimately fell by 0.52 per cent to 3,906.65 points, having already started the day at a discount.
Investors in Europe were also somewhat cautious ahead of fresh inflation figures from the USA. Meanwhile, November’s ZEW Indicator of Economic Sentiment was well-received, rising for the first time since May.
Even though the market is virtually crying out for consolidation after the strong rally of the past weeks, some market participants remarked that the basic mood remains friendly despite the slowing momentum. Meanwhile, investors continued to focus on the ongoing reporting season.
Forex, gold, oil and crypto
The euro exchange rate changed little on Tuesday. During the US session, the common currency euro, was traded at 1.1583 US dollars.
The prime topic on the market remains the high level of oil prices and the resulting consequences. It has been discussed for several days whether the USA could release part of its strategic oil reserves. On Monday, US Energy Secretary Jennifer Granholm had said that President Joe Biden could make an announcement this week given the high oil and fuel prices. However, Granholm did not name concrete measures. Today, oil prices rose again, with North Sea Brent up 32 cents to $83.76, while US WTI gained 76 cents to $82.69.
Gold appreciated again today, rising just above $1,830 per troy ounce in the end, after the latest economic data from the US came in.
Cryptocurrencies, the darling of many investors at the moment, continued their bullish momentum. Especially, the rotation within the crypto market is coming to light now, where profits shift from one digital asset to another almost daily. Today, Bitcoin held steady at around $67,100, while Ethereum, Binance Coin and XRP consolidated somewhat, losing around 1 per cent each. However, Cardano, Litecoin and Bitcoin Cash finally had their day, breaking out of tough resistance levels and adding approximately 8-10 per cent today.
Corporate and world economic news
German exports fell again in September after they had already fallen in August. Shortages of materials and bottlenecks in the supply chains could be behind the declines, affecting the export economy. In September, exporters sold 0.7 per cent less abroad than in the previous month, according to the Federal Statistical Office. Economists surveyed by Dow Jones Newswires had expected a minus of 0.5 per cent. Compared to the same month last year, exports were 7.1 per cent higher. Imports rose 0.1 per cent in September from the previous month. Over the year, imports were 12.9 per cent higher.
The economic expectations of the stock market and financial experts for Germany rose significantly in November, although the assessment of the economic situation deteriorated more than expected. The ZEW index of economic expectations rose to 31.7 (October: 22.3) points, according to the Centre for European Economic Research (ZEW). It was the first increase since May. Economists surveyed by Dow Jones Newswires had forecast a decline to 20.0 points.
US producer prices rose noticeably in October. Prices at the producer level increased on average by 0.6 per cent compared to the previous month. Economists surveyed by Dow Jones Newswires had expected an increase of 0.6 per cent. Over the year, producer prices were 8.6 per cent higher. The recent surge in producer prices reflect many factors, including disrupted supply chains, extended delivery times, higher transportation costs and rampant material and labour shortages, as well as the recovery in energy and commodity prices.
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