Frankfurt (Reuters) – After the recent highs on the European stock exchanges, investors will shift down a gear on Wednesday.
“Investors are waiting for the details of the two trillion dollar economic stimulus package that US President Joe Biden wants to present during the day,” said analyst Pierre Veyret of the brokerage firm ActivTrades. The consultations of Opec + on the Rohl production volumes on Thursday also ensured restraint.
The DAX, which on Tuesday crossed the psychologically important 15,000 mark for the first time, closed barely changed on Wednesday at 15,008.34 points. The EuroStoxx50 crumbled to 3919.81 counters. On Wall Street, however, the leading S&P 500 index rose by up to 0.6 percent to a record high of 3984.21 digits.
The discussion about the safety of AstraZeneca’s coronavirus vaccine and the partial suspension of vaccinations with this serum only played a subordinate role, said portfolio manager Thomas Altmann from wealth advisor QC Partners. “The Brsians are less concerned with the pandemic anyway, but much more with the time after the pandemic.”
BIDEN WANTS TO PRESENT INFRASTRUCTURE PLANS
On the foreign exchange market, the expectation of an additional surge in US growth from Biden’s investment plans temporarily lifted the dollar index, which reflects the exchange rate to major currencies, to a five-month high of 93.437 points. “In contrast to the recently decided financial aid, which mainly served to alleviate the consequences of the corona crisis, the US President wants to tackle points on his longer-term agenda with the new measures,” said Commerzbank analyst Thu Lan Nguyen. “This includes investments in infrastructure with a focus on climate protection as well as in education and social issues.”
However, additional government spending raised speculation that inflation would pick up, warned market analyst Milan Cutkovic from brokerage firm Axi. “There are growing concerns that a Federal Reserve that has been idle for too long could let the US economy run hot. Despite attempts by the central bank to calm the markets, it is questionable whether interest rates can and will really remain at a low level through 2023 . ” Against this backdrop, the 10-year US Treasury yield of 1.716 percent stayed within striking distance of its 14-month high on Tuesday.
Meanwhile, the raw Brent variety from the North Sea fell 0.3 percent to 63.97 dollars per barrel (159 liters). A panel of experts from Opec + had previously lowered the forecast for the increase in demand in 2021 by 300,000 to 5.6 million barrels per day. Against this background, it is likely that the export cartel will extend its current subsidy limits as well as Saudi Arabia its additional voluntary cuts, forecast Neil Wilson, chief analyst of the online broker Markets.com.
DELIVEROO MISSED BRSENDEBT
In terms of stocks, the disappointing Brsendebt of Deliveroo was the focus. The shares of the food supplier started in London well below the issue price of 390 pence and were 27 percent in the evening at 284.9 pence. In addition to the working conditions for the delivery staff, the curtailment of voting rights, with which company boss Will Shu wants to secure control, deter potential investors, said investment strategist Michael Hewson from brokerage firm CMC Markets. They also doubted that Deliveroo would be in the black anytime soon in the hotly contested food delivery market.
In contrast, the shares of BioNTech, which rose by 6.5 percent, were in demand again. According to a study, the coronavirus vaccine from the Mainz-based company is 100 percent effective in adolescents between the ages of twelve and 15.