Market report: US markets nervous about Nvidia figures | EUROtoday

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As of: February 21, 2024 10:16 p.m

Was the latest AI euphoria justified? The numbers from the chip firm Nvidia after the US inventory market closed promise to shed some gentle on this. The DAX achieved a small plus prematurely.

In the run-up to necessary figures from the know-how trade, the New York inventory markets appeared nervous. The Dow Jones commonplace worth index closed with a small acquire of 0.13 p.c.

In distinction, the know-how index Nasdaq 100 was underneath stress with a reduction of 0.38 p.c. The sector was impacted not solely by profit-taking at AI chip provider Nvidia, but in addition by a pessimistic forecast from US cybersecurity specialist Palo Alto.

US traders have been additionally not very happy with the minutes of the central financial institution assembly on the finish of January that have been revealed within the night. Afterwards, most contributors on the assembly identified the dangers of slicing rates of interest too early. Only a number of financial authorities have emphasised the hazards related to sticking to an “overly restrictive course” for too lengthy. There is now additional hypothesis on the markets that the primary downward transfer in rates of interest won’t come earlier than June.

The extra necessary occasion of the day takes place after the US inventory market closes. Then Nvidia's quarterly report and outlook will present clues as as to whether the latest AI euphoria on the inventory markets was justified. The Californian know-how group's chips play an necessary function in lots of AI functions – and the inventory markets owe a big a part of the latest upward motion to the creativeness surrounding the subject of AI. “Regardless of the initial reaction to the quarterly figures, Nvidia remains one of the fastest-growing companies with one of the highest profit margins in the universe of large companies this year,” emphasised market professional Robert Rethfeld from Wellenreiter-Invest.

The worry of disappointment was additionally noticeable on the German inventory market. The DAX, which had in the meantime damaged out considerably extra clearly, ended buying and selling with a modest acquire of 0.3 p.c.

At least the main index has not but jeopardized its upward development with its latest sideways motion. “As long as the DAX can largely defend the 17,000 point mark, the next target is 17,300 points,” Christian Zoller, chart know-how professional at Bank ING, is satisfied.

“From a chart perspective, the psychological mark has not yet been significantly defeated,” factors out IG analyst Christian Henke. This would solely be the case at a closing value above 17,150 factors.

A barely encouraging financial sign got here from the Eurozone. According to the newest survey by the EU Commission, client sentiment within the euro space improved in February. The barometer for the patron local weather rose by 0.6 factors to minus 15.5 factors. Economists surveyed by Reuters had anticipated a price of minus 15.6 factors. Despite the rise, the barometer remained effectively under its long-term common. The excessive price of residing, which eats away at residents' buying energy, is especially miserable client sentiment.

Shares of cybersecurity firm Palo Alto fell greater than 25 p.c on Wall Street. That was the most important each day loss within the firm's historical past. Rivals Fortinet, Zscaler and Crowdstrike additionally misplaced closely. Palo Alto expects third-quarter income to be between $2.30 billion and $2.35 billion. Analysts had anticipated a median of $2.62 billion. Companies' economy-related financial savings conduct has just lately outweighed their considerations concerning the threat of on-line assaults, it mentioned.

Intel has landed the US software program firm Microsoft as a brand new buyer for its contract manufacturing division and needs to change into the market chief within the discipline. Microsoft will use Intel's 18A know-how to provide a chip, the US chip firm introduced. As a outcome, the corporate expects orders price 15 billion euros for its foundry unit, as a substitute of the beforehand forecast ten billion {dollars}. By 2025, Intel needs to overhaul its Taiwanese competitor TSMC via technological progress.

After the publication of the Fed minutes, the euro was capable of make up some floor, most just lately reaching $1.0820. The value of a troy ounce of gold rose by 0.1 p.c to $2,025.

Oil costs have been capable of stabilize considerably once more after additional losses within the meantime. A barrel (159 liters) of North Sea Brent for supply in April at present prices $83.09, 0.7 p.c greater than yesterday.

Fresenius shares recorded above-average features within the DAX. The healthcare group has made additional progress in its restructuring and is subsequently elevating its financial savings targets. Day-to-day enterprise additionally went a bit higher in 2023 than analysts anticipated, because of an unexpectedly good closing quarter.

The Federal Motor Transport Authority has found inadmissible emissions management switch-off units in BMW diesel fashions. Around 33,000 “X3 xDrive20d” and “X3 sDrive 18d” autos are affected, the authority mentioned. The Munich automobile producer is cooperative and has developed recommendations for {hardware} and software program updates. The estimated 100,000 to 150,000 autos constructed between 2010 and 2014 throughout Europe will most likely be up to date from June 2024. BMW was unable to supply any details about the prices. The automobile producer additionally reserved the fitting to look at an objection to the KBA's choice.

In the night, MTU shares got here underneath stress. The engine producer's shareholders should be content material with much less dividends in the interim as a result of monetary penalties of a cloth defect within the engines of many Airbus jets. The DAX group introduced within the night that 2.00 euros per share certificates would circulation in 2023 – after 3.20 euros for 2022. Analysts, nevertheless, had anticipated a rise to over 4.00 euros. MTU should examine engines from companion Pratt & Whitney for doable injury. As a outcome, excessive monetary burdens are to be anticipated.

The ver.di union has referred to as on workers on the DHL air freight middle in Leipzig to go on a warning strike. The workers ought to cease working from Thursday at 2 p.m. till Friday morning at 6 a.m. Ver.di is looking for annual trip to be elevated by 5 days.

In the MDAX, the shares of the North Hesse photo voltaic know-how supplier SMA Solar have been among the many largest losers. The background is unhealthy trade information: The US firm SolarEdge had given a dark outlook and thus clearly missed analysts' expectations. SolarEdge shares fell greater than 14 p.c in early U.S. buying and selling.

After the robust warning strike at Lufthansa, negotiations befell once more as we speak. In Frankfurt and Berlin, representatives of the ver.di union met with employers from Lufthansa and personal aviation safety firms. A breakthrough appears doable in each rounds if the talks proceed tomorrow.

Meanwhile, the Cockpit (VC) pilots' affiliation has provided mediation in its collective bargaining dispute with the Lufthansa subsidiary Discover. “The ball is now in the employer’s court,” the pilots’ union mentioned on Wednesday. VC had beforehand referred to as on its members at Discover to go on strike a number of occasions. The worker representatives need to obtain the first-ever conclusion of collective agreements for the round 400 workers within the cockpit of the vacation airline.

In the dispute over the long run use of necessary cellphone community frequencies, the corporate 1&1 sees itself strengthened by an professional opinion. The firm from Montabaur as we speak revealed a report it had commissioned from former constitutional choose Udo Di Fabio, based on which the Federal Network Agency's earlier plan can be unconstitutional.

According to preliminary annual figures, Knaus Tabbert's paper climbed to its highest stage since mid-January. Analyst Martha Ford from Jefferies praised the event within the closing quarter, during which the tenting car producer's gross sales exceeded the already excessive earlier 12 months's determine and market estimates.

The prospect of a doubled dividend precipitated CompuGroup shares to recuperate barely. The personally liable companion of the software program firm working underneath the authorized type SE & Co. KGaA had made a corresponding decision. CompuGroup is a software program supplier specializing in medical practices and hospitals.

Thanks to a continued inflow of consumers, Telefónica Deutschland (O2) achieved one other report end in 2023. Last 12 months, 1.3 million new customers have been added, mentioned the German subsidiary of the Spanish Telefónica group. As a outcome, gross sales elevated 4.7 p.c to eight.614 billion euros and the adjusted working outcome elevated 3.1 p.c to 2.617 billion euros.

Danone plans to promote its dairy and plant-based merchandise enterprise in Russia to a Chechnya-linked businessman, based on a media report. The dairy firm Vamin Tatarstan, which belongs to Mintimer Mingasov, has agreed to pay the equal of 180 million euros, the Financial Times reported, citing a corresponding letter.

After disappointing figures, traders turned their backs on Glencore. The mining firm's shares fell to a two-year low in London. After two consecutive report years, adjusted earnings earlier than curiosity, taxes, depreciation and amortization (Ebitda) halved to $17.1 billion in 2023. The group additionally lower its distributions to traders.

The growth plans for the US electrical automobile producer Tesla's manufacturing unit in Grünheide close to Berlin have been rejected by the bulk in a citizen survey. However, the survey just isn’t binding. Tesla needs to regularly improve manufacturing in Grünheide and likewise increase its manufacturing unit premises. Tesla needs to purchase extra area for this function.

The buying and selling large Amazon makes the leap into the inventory market Olympus. The inventory might be included within the Dow Jones Industrial Average on February twenty sixth, index supplier S&P Dow Jones Indices introduced yesterday night. The drugstore and pharmacy chain Walgreens Boots Alliance has to make manner for this. S&P justified the change with the rising significance of retail for the US economic system.

At the British-Australian mining firm Rio Tinto, the sluggish restoration of the Chinese economic system from the corona pandemic has put stress on the stability sheet. The surplus attributable to shareholders fell by 19 p.c to simply underneath $10.1 billion final 12 months in comparison with the identical interval final 12 months.

The English billionaire Sir Jim Ratcliffe has taken over 27.7 p.c of the shares in Manchester United. His entry is now full. The English soccer report champions introduced yesterday night that each one the mandatory approvals from the league and the affiliation have been in place. The majority proprietor of the membership, which has been in sporting disaster for a very long time, stays the Glazer household from the USA, which is unpopular with many followers.

Shares within the British monetary establishment HSBC have been underneath vital stress. Despite a rise of 78 p.c, annual revenue earlier than taxes was decrease than analysts anticipated. Higher curiosity revenue was overshadowed by a $3 billion writedown on its stake in China's Bank of Communications.