Investors are awaiting a speech by US Federal Reserve Chairman Jerome Powell at the annual economic symposium in Jackson Hole. Powell is expected to reiterate the US central bank’s commitment to rapidly raising rates to curb inflation.
Also in the spotlight is the news that British energy market regulator Ofgem will raise its electricity bill cap by 80% to £3,549 a year in October, after raising it by 54% in April.
The composite index of the largest companies in the region Stoxx Europe 600 by 10:59 Moscow time increased by 0.09% and amounted to 433.77 points.
The German DAX index rises by 0.32%, the French CAC 40 – by 0.27%, the British FTSE 100 – by 0.47%. The Italian FTSE MIB and the Spanish IBEX 35 are up 0.31% and 0.41% respectively.
French consumer confidence rose unexpectedly to 82 in August from 80 in July, the lowest level since June 2013. The indicator rose for the first time in eight months. Analysts on average predicted the indicator at the level of 79 points, writes Trading Economics.
Leading index of consumer confidence in Germany, calculated by the research company GfK, fell to a minimum since 1991, due to concerns about rising energy prices.
The value of the September index fell to minus 36.5 points compared to minus 30.9 points a month earlier. Analysts on average predicted a decline to minus 31.8 points, according to Trading Economics.
Shares of SAS AB rise in price by 1%. The Scandinavian airline increased its net loss in the third quarter of fiscal year 2022 due to flight cancellations and pilot strikes.
The price of Deutsche Lufthansa AG shares increases by 0.2%. The German carrier intends to continue talks with the union representing the company’s pilots amid wage disputes that threaten the company with strikes. Meanwhile, the union has already begun preparations for a strike.
Among the growth leaders in the composite regional index are traded shares of SKF AB, which produces health and hygiene products, (+6.2%), the Swedish oil and gas Orron Energy (+4.9%) and the Swiss online pharmacy Zur Rose Group AG (+ 3.8%).
Stock indexes of the largest countries in the Asia-Pacific region (APR) mostly rose in trading on Friday, with the exception of China’s Shanghai Composite, which fell after an initial rise.
Traders are awaiting a speech by US Federal Reserve Chairman Jerome Powell at the annual economic symposium in Jackson Hole.
The Japanese Nikkei 225 index rose 0.57% by the close of trading.
Among the components of the index, shares of polymer producer Unitika Ltd. rose the most. (+4.4%), chemical company Mitsui Chemicals Inc. (+3.1%) and special equipment manufacturer Komatsu (+3%).
China’s Shanghai Composite fell 0.3%, while Hong Kong’s Hang Seng rose 1%.
China has allocated 1 trillion yuan ($146 billion) to stimulate the economy, mainly focusing on infrastructure spending.
The State Council of China has unveiled a package of measures that includes an additional 300 billion yuan that state-owned banks can invest in infrastructure projects, on top of the 300 billion yuan announced at the end of June. In addition, regional authorities will receive 500 billion yuan in the form of special bonds from previously unused quotas. In turn, state-owned energy companies will be able to sell bonds worth 200 billion yuan. Meanwhile, the agricultural sector will receive 10 billion yuan in subsidies.
In Hong Kong, developer Longfor Group Holdings Ltd rose most significantly. (+5.7%), producing solar panels Xinyi Solar Holdings Ltd. (+5.4%) and biotech Wuxi Biologics (Cayman) Inc. (+5.3%).
Shares of CNOOC Ltd. fell by 1.1%, although China’s largest offshore oil and gas company more than doubled its net profit in the first half of 2022 thanks to rising oil prices.
South Korean index Kospi rose by 0.15%.
Shares of one of the world’s largest manufacturers of chips and consumer electronics Samsung Electronics Co. rose by 0.5%, automaker Hyundai Motor Co. – by 0.8%.
The Australian S&P/ASX 200 gained 0.8%.
The market value of the world’s largest mining company BHP rose by 1.5%, its competitor Rio Tinto Ltd. – by 1.4%.
National bank of Ukraine’s official rates as of 26/08/22
Source: National Bank of Ukraine
Oil quotes strengthened their rise during trading on Friday and are ending the week in positive territory due to reduced fears of a recession in the US.
October futures for Brent on London’s ICE Futures exchange rose by $1.57 (1.58%) to $100.91 per barrel by 14:11 CST.
Quotes of futures for WTI for October in electronic trading on the New York Mercantile Exchange (NYMEX) by the specified time increased by $1.22 (1.32%) – up to $93.74 per barrel.
On the eve of Brent has fallen in price by 1.9%, WTI – by 2.5%, but since the beginning of the week both contracts have increased in price by more than 3%.
Markets continue to receive support from the statistical data published the day before, according to which the reduction of US GDP in the second quarter amounted to 0.6% in terms of annual rates. The preliminary estimate was worse and indicated a fall of 0.9%.
In addition, Saudi Arabia, OPEC’s largest oil producer, has previously hinted at the possibility of a cartel cut in production, which also supports prices.
“A group of producing countries is committed to maintaining a price floor around $100 a barrel, and therefore downside potential appears to be limited,” said Stephen Brennock, an analyst at PVM.
Market participants also follow the annual economic symposium in Jackson Hole. On Friday, the event will feature a speech by Federal Reserve Chairman Jerome Powell, which could cause the dollar to react, which in turn will affect commodity prices, said SIA Wealth Management senior strategist Colin Czeszynski.
Central bank official rates of banking metals as of August 26
One troy ounce=31.10 grams
Press lunches that help frontline media and business grow.
Guys, we are pleased to announce that we are starting monthly press lunches with business and media to cover and discuss current issues in various areas. And at the same time, we do charity work to help journalists on the front lines.
THE MAIN OBJECTIVE
During the meetings, we will collect funds that can save the life of media worker Dmytro Boguslavsky, who is currently at the front.
WHAT? WHERE? AND WHEN?
On September 8, the first press lunch on the topic of REAL ESTATE will be held.
Start time: 16:00
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So don’t miss the chance, join the press lunch and at the same time help journalist on the front line!
Entrance charity fee for participants:
from UAH 200 (funds will be transferred to the purchase of walkie-talkies for the journalist)
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