The evening market overview, compiled by Dow Jones Newswires:
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+++++ HOLIDAY NOTE +++++
MONDAY: Due to the Chinese New Year celebrations, no stock trading took place on the Chinese mainland stock exchanges or in Hong Kong. The holiday break in the heartland lasts up to and including January 31.
There was no trade in South Korea because of the Korean New Year.
In Australia, trading was suspended due to a weekend compensation day for the national holiday.
TUESDAY: Because of the Chinese New Year celebrations, there is no stock trading on the Chinese mainland stock exchanges or in Hong Kong.
+++++ STOCK MARKETS (6:33 p.m.) +++++
INDEX booth + -% + -% YTD
EuroStoxx50 3,677.84 -2.68% -1.80%
Stoxx50 3,388.52 -2.23% -0.43%
DAX 13,204.77 -2.74% -0.33%
FTSE 7,412.05 -2.29% + 0.58%
CAC 5,863.02 -2.68% -1.92%
DJIA 28,651.53 -1.17% + 0.40%
S&P-500 3,256.06 -1.20% + 0.78%
Nasdaq Comp. 9,177.84 -1.47% + 2.29%
Nasdaq-100 8,993.06 -1.62% + 2.98%
Nikkei-225 23,343.51 -2.03% -1.32%
EUREX Stand + -Ticks
Bund future 174.16 +70
+++++ RAW MATERIAL MARKETS +++++
ROHÖL most recently VT-Settl. +/-% +/- USD% YTD
WTI / Nymex 52.65 54.19 -2.8% -1.54 -13.4%
Brent / ICE 58.88 60.69 -3.0% -1.81 -10.8%
METALLE last day before +/-% +/- USD% YTD
gold (Spot) 1,579.87 1,571.80 + 0.5% +8.07 + 4.1%
Silver (spot) 18.12 18.10 + 0.1% +0.02 + 1.5%
Platinum (spot) 987.95 1,006.65 -1.9% -18.70 + 2.4%
Copper future 2.60 2.68 -3.2% -0.09 -7.1%
Fears of an economic downturn combined with falling demand are putting pressure on oil prices. If the effects of the Sars virus are projected for 2020, Goldman Sachs analysts expect a daily decline in demand of around 260,000 barrels. Opec is also discussing possible reactions to the virus. There is also an exchange between Opec and Russia on how to react to the crisis, representatives of the raw materials cartel say. The gold price climbs to the highest level in seven years. With the continuing fear of the spread of the corona virus, the “safe haven” is experiencing a clear influx, it is said.
+++++ FINANCIAL MARKET USA +++++
Wall Street is heading for the highest daily loss since early October, and for the Nasdaq it could be the biggest daily crash since August 23. Despite drastic measures in China, the new corona virus is spreading and with it the concern for an uncontrollable pandemic. The fear of a pandemic goes hand in hand with concerns about a global economic downturn. New construction sales are the only economic data of the day not relevant given the global issues, they were weaker than predicted in December. Shares that are particularly affected by the effects of the virus will be sold again. The titles of the airlines American Airlines, United Airlines and Delta Air Lines give up to almost 6 percent. In the tourism sector, it hits the titles of the Royal Caribbean Cruises at a discount of 6.7 percent. In contrast, Alpha Pro Tech is up almost 23 percent. The manufacturer of protective masks could be a profiteer of the epidemic, according to market speculation. The papers of vaccine manufacturers and diagnostics specialists are bullish: Co-Diagnostics by 45 percent, NanoViricides by 44 percent, Allied Healthcare Products by 38 percent and Inovio Pharmaceuticals by 27 percent. Sprint released third quarter results. The mobile communications company reported a lower loss than expected by the market. However, sales were below the market estimate. The churn rate among mobile customers also increased. The share falls by 2.3 percent. The focus is also on the merger with T-Mobile US, which has not yet been approved.
+++++ OUTLOOK ECONOMY ++++++
There are no important dates for publication.
+++++ FINANCIAL MARKETS EUROPE +++++
Europe’s stock exchanges were under massive selling pressure at the beginning of the week. The fear of the spread of the corona virus was the main issue in the financial markets. Investors are increasingly concerned about the economic impact. The Commerzbank estimates that the immediate economic consequences – loss of production due to illness or death – are very likely to be in dimensions below the level that will become apparent in China’s gross domestic product. An ifo business climate index, which remained below expectations, was also not helpful. However, according to Commerzbank, the index turned out to be good at second glance. The decisive index for the export-oriented manufacturing sector has increased noticeably. The sector index of commodity stocks was the biggest loser with a decline of 4.3 percent, while the shares of airlines and travel companies fell by 2.5 percent on average. The volatile tech sector declined by 3.4 percent. By contrast, the defensive utilities held up comparatively well at a discount of 1.1 percent. In the luxury segment, which is heavily dependent on the Chinese market, LVMH fell 3.7 percent, while Kering fell 3.6 percent. Lufthansa lost 4.3 percent. Italian government bond yields returned sharply after ruling Socialists won the weekend’s regional election in Emilia-Romagna. This benefited Italian banks, which held up better than the sector across Europe.
+++++ CURRENCIES +++++
CURRENCIES last +/-% Mon, 8:30 a.m. Fri, 5:35 p.m.% YTD
EUR / USD 1.1014 -0.15% 1.1035 1.1021 -1.8%
EUR / JPY 120.09 -0.06% 120.36 120.56 -1.5%
EUR / CHF 1.0687 -0.18% 1.0714 1.0709 -1.6%
EUR / GBP 0.8438 + 0.03% 0.8442 0.8435 -0.3%
USD / JPY 109.04 + 0.11% 109.07 109.41 + 0.2%
GBP / USD 1.3053 -0.19% 1.3070 1.3066 -1.5%
USD / CNH (offshore) 6.9821 + 0.41% 6.9680 6.9359 + 0.2%
Bitcoin
BTC / USD 8,773.76 + 2.59% 8,639.76 8,471.26 + 21.7%
After the publication of a weak ifo business climate index from Germany, the euro fell to its lowest level in eight months at $ 1.1009. The supposedly safe yen, on the other hand, is growing strongly, even though the Japanese currency has come back somewhat from its daily highs. The dollar currently costs 109.04 yen after around 109.50 yen on Friday.
+++++ FINANCIAL MARKETS EASTERN ASIA +++++
The fear of the spread of the corona virus caused the Tokyo Stock Exchange the largest daily minus in around five months on Monday. Investors parted with risk papers because a pandemic would not remain without impact on the global economy. Among other things, Japanese bonds were sought as a safe haven. In Shanghai, the holiday break should last until Thursday. However, the authorities have extended the break by three days because of the spreading virus. According to current planning, the Chinese mainland exchanges would not trade again until next Monday, February 3. The great danger for the global economy is not only that the virus quickly spreads to other countries, but that any shock to the huge industrial and consumer machine China threatens to spread to other countries due to the closer trade and financial situation due to globalization involvements. The courses of the airlines went further down. All Nippon Airways lost 3.0 percent and Japan Airlines 3.9 percent. The course of the airport operator Japan Airport Terminal fell by 7.4 percent.
+++++ CORPORATE NEWS SINCE 1:30 PM +++++
Lufthansa: “Slightly reserved booking situation” due to corona virus
Lufthansa has so far not complained about flight cancellations due to the corona virus from China. The airline is currently experiencing “a slightly reserved booking situation” for flights to and from China, as a spokesman for the AFP news agency said on Monday. But “flights were not canceled due to the corona virus”. The company sees itself prepared for the novel pathogen itself.
Audi with delivery bottleneck when manufacturing the E-Tron Sportback
Audi is having difficulty starting production of the E-tron Sportback. An Audi spokeswoman confirmed that there is currently a supply component bottleneck. The production of the electric car in the Brussels plant is therefore “flexibly adapted”. Short-time work would also be checked in the factory for a limited period of time. The production of the E-tron and E-tron Sportback is a “complex orchestration with more than 300 suppliers”. The agency Reuters, citing industry circles, previously reported that there were delivery problems with battery components.
Merck is investing 250 million euros in Biotech-Entwicklungszentrum
The German Merck KGaA will invest a total of 250 million euros in a biotech development center in Switzerland by 2022. The new plant in Corsier-sur-Vevey will be dedicated to the development and manufacture of biotechnological agents for clinical studies, said the pharmaceutical and specialty chemicals company from Darmstadt.
Gea reaches its own forecast for 2019
(MORE TO FOLLOW) Dow Jones Newswires
January 27, 2020 12:36 ET (17:36 GMT)
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