Daily Comments
Germany: most indexes turn bullish on the back of US data
01.09.2010 8:12:00 Erokhina Anna, Analyst, Global Markets (Finam)
On Tuesday, August 31, most German indexes managed to claw their way back into positive territory primarily thanks to an upbeat consumer confidence reading in the United States. However, in the course of Tuesday’s trading session both investor sentiment and the local corporate news flow were ambiguous, while the TecDAX Performance Index remained in the red. The newly released economic data are almost in line with expectations, with the seasonally adjusted number of people out of work in August falling 17,000 vs. the projected decline of 20,000. It should be noted that the number of unemployed people without seasonal adjustment declined from 3.192 mn in July to 3.188 mn, while an increase to 3.2 mn had been predicted. The jobless rate remained at 7.6% in August, which is broadly in line with expectations.
By the final bell, Germany’s benchmark DAX Index firmed 0.22% to close at 5,925.22, while the TecDAX Performance Index lost 0.14% of its market value and closed at 741.85.
By 16:38 GMT, Brent crude oil futures were off 2%, while gold rose 0.85%. The European 16-nation single currency advanced 0.182% against the US dollar and traded at 1.269.
The market capitalization of semiconductor manufacturer Infineon dwindled 2.6% on the back of a plunge in the Philadelphia Semiconductor Index to the lowest level since February. Analysts at Exane BNP Paribas said they would stock to a more cautious short-term stance due to mounting uncertainty over the sector’s outlook. In addition, Natixis Securities cut Infinion’s target price from EUR 7.5 to EUR 7.1.
The stock price of pharmaceutical company Bayer grew 2.4% on news Xarelto, the drug developed together with Johnson & Johnson, successfully passed clinical tests with more than 3,400 patients. In the meantime, steelmaker ThyssenKrupp shed 0.07% of its market value. According to recent media reports, the company may soon file for insolvency for its submarine-making unit Hellenic Shipyards, if the steelmaker fails to reach an agreement with a prospective buyer, i.e. Abu Dhabi MAR.
