Friday, 26 August 2016
Fed chief Yellen sending vague signals of an imminent rate hike. That’s enough to make the sluggish market fire. Euro and Dollar react with a roller-coaster ride.
The long wait had on Friday afternoon finally ended. Fed chief Janet Yellen announced its highly anticipated assessments of the economic and monetary situation of the United States. Even if the statements are not really included something new, the stock markets reacted positively.
After the investors had kept covered during the day, 0.5 percent took the Dax after the speech Plus and 10,587 points in the working day. For MDax of midsize companies it ran up 0.4 percent to 21,560 points. Also, the technology index TecDAX made after the speech a set in the green area; it rose 0.3 percent to 1723 points.
Euro Stoxx 50 made meanwhile 0.8 percent well to 3012 meters.
The arguments for a rate hike have won loud Yellen traction. There were improvements in the US labor market, also moderate economic growth was expected, she said in her speech at the central bankers conference the Fed in Jackson Hole in Wyoming. To importantly, the timing exactly when the Fed wants to take the next rate move, however, they did not comment.
“Investors reassured that Janet Yellen an approximation of the economy to the objectives of the central bank announced at the same time a early rate hike but not yet a foregone conclusion, “said Daniel Saurenz of Feingold Research n-tv.de. Thus they consider the environment “in the optimum scenario of low interest rates, given reasonably stable economy in the US”. At the same time the door remains still open, for fall the data next week weaker than expected, the interest rate screw stay in September on hold.
A rate hike at the FOMC meeting on 20 and 21 September remains therefore possible. Yellen secured simultaneously but for the possibility from that the economic conditions in the next few weeks should deteriorate. Of particular importance is likely in this context the upcoming 2 September employment report for August to be.
The rate cut could therefore continue to come in September, November or December. “Our decisions always depend on in what degree the incoming data to view (the Fed) confirm,” Yellen said. “Yellen would set the table for September. Perhaps it delivers the rate increase but only in November or December,” said Brian Jacobsen of Wells Fargo Funds. The expectations of a US interest rate hike by the end of the year have risen steadily in recent days and are in the meantime, at 57 percent.
In addition to the top-date in the USA, there was also this country some dates. The feedback from the German economic front, for example, were positive. The German consumer sentiment has improved again, despite recent terrorist attacks and the surprising Proposed referendum on United Kingdom membership of the European Union-vote in the UK, such as the GfK market research company announced. Only on Thursday had the Ifo Institute reported a surprising deterioration in sentiment in the German company.
The individual titles translated in Dax, the recent weakening preference shares of Volkswagen with plus 3.1 percent to the top. Investors are relieved that agreement on compensation to US dealers. According to insiders, the Wolfsburg-based group wants its 650 US dealers pay a total of at least 1.2 billion dollars.
In the SDAX small-cap companies lost the papers of ElringKlinger 0.3 percent , Here loaded a Painted buy recommendation Bankhaus Lampe. ElringKlinger had to change not managed by a highly profitable niche specialist to a broad-based trader, complained analyst Christian Ludwig.
A highlight in Germany was the much-anticipated AGM at Stada . At the shareholder meeting, there was a violent slugfest. Before the crucial vote to the new supervisory board members, the major shareholder Active Ownership Capital (AOC) and the acting chairman of the board Martin evening covered each other with sharp accusations. The wrangling over the new composition of the Supervisory Board of STADA continues. Shareholders appear stoic. The papers quoted virtually unchanged
Wall Street:. Sturm remains from
Janet Yellen spoke. While its highly anticipated speech at the central bankers meeting in Jackson Hole sent the dollar, gold and bond prices on a roller coaster ride, but arrived on Wall Street initially well received.
Dow Jones Index fell 0.3 percent to 18,395 points. In the daily high, the index had recorded at 18,572 points. The S & amp; P 500 lost 0.2 percent. The Nasdaq Composite, however gained 0.1 percent. were implemented 822 (718) million shares. Here the 1,206 (1,682) were price winners 1,821 (1,341) losers against, while 102 titles included unchanged.
Among individual stocks fell Herbalife by 2.3 percent. Headlines, after major investor Carl Icahn considering a sale of its share of manufacturers of dietary supplements, weighed on the course. The investment bank Jefferies is currently looking obviously for a suitable group of bidders.
GameStop lost 10.6 percent and Splunk 10.1 percent. The computer games retailer GameStop has missed revenue expectations in its second quarter and continues to suffer from the fact that many games downloaded online and not be purchased at the store. With Splunk the market acted apparently along the lines of merchandise at good news. The software company convinced both with its quarterly figures and the outlook. Only the forecast for the operating margin is not raised Splunk. Since the low in February, the share price had already doubled, however.
The price of the cosmetics chain Ulta was up 6.1 percent. Although the company exceeded its financial results for the second quarter expectations, but disappointed with the earnings outlook. A decline by 3.9 percent experienced Talend. This has come only to the stock market in July company that specializes in the integration of data, has almost doubled the loss in its second quarter
Asia. Beijing’s liquidity injection acts
The motto on the markets in Southeast Asia was risk aversion in the morning. Before Yellen’s speech in Jackson Hole, investors prefer parted shares.More about
The Red Lantern contributed to the week ending of the stock market in Tokyo. The Nikkei index lost 1.2 percent to 16,361 points. In Japan disappointing consumer prices dampened the mood. In July, prices fell for the fifth month in a row back and labeled it the strongest decline for more than three years. Prices slipped 0.5 percent from the prior-year period. Economists had only expected a decline of 0.4 percent. Some players are concerned, given the newly non-existent inflation that the central bank runs out of loosening tools to ensure rising prices.
On the Chinese stock markets went against the trend in the other places up, but could the during the day higher profits can not be maintained until the end. Here the administered by the central bank of the country medicine was effective. After converted just over 10 billion euro liquidity injection for the monetary system on Thursday it has increased again on Friday the dose. Throughout the course of the week the market flowed so just over 41 billion euros.
Shanghai Composite rose 0.1 percent to 3070 points, in Hong Kong the Plus was somewhat larger. For buying mood have also ensured that the regulator of the insurance industry have denied an alleged planned massive funds withdrawal from the market, it said. The day before had rumors for sales made that there was a risk of deduction in the amount of converted up to 80 billion euros
Forex:. Sharp fluctuations in euro and dollar
The euro reacted only for short time with strong price fluctuations on statements by Yellen. After a speech of the guardian of the currency, the common currency shuttled quickly near the level of 1.13 US dollars.
In the afternoon, the price stood at 1.1295 dollars and thus hardly changed for the eve. The European Central Bank (ECB) set the reference rate at 1.1290 (Thursday: 1.1290) dollar notes. The dollar cost order 0.8857 (0.8857) Euro
commodities. Oil prices fell slightly
Saudi Arabia, meanwhile, dampened speculation on a feed limit for crude oil and thus sent the prices for the raw material down. The energy ministers of the country, Khalid Al-Falih said in an interview that he did not believe that a significant intervention in the market is necessary. The market could balance out by itself and is moving in the right direction.
The North Sea grade Brent listed afternoon unchanged at $ 49.92 per barrel (159 liters). US light crude WTI rose 0.9 percent to $ 47.73.
Members of the Organization of Petroleum Exporting Countries (Opec) to want the end of September on the outskirts of the International Energy Forum in Algeria meet to discuss the prevailing market overcapacity. In April talks between OPEC producing countries also capped the production had failed.
“I do not expect that will be decided on a funding cut in the OPEC meeting in Algeria,” said commodity trader Oystein Berentsen from the raw material Broker Strong Petroleum. “Key members of the organization are much too concerned on their own market share.” Thus, oil prices could hold in the longer term above the 50 dollars mark, the excess capacity would have to be clearly reduced.