Today’s Market Movements
Denmark: OMX:C25 (1.47%) ; Sweden: OMX:S30 (1.62%) ; Norway: OBX:OSL (1.38%) ; S&P 500 (1.16%) ; Nasdaq (0.92%)
European markets reacted to Jerome Powell’s speech from yesterday’s FOMC meeting. Chairman Powell hinted the FED will be reigning in its bond purchasing programme, which currently purchases USD 120bn of bonds per month, around November. Powell said tapering will be «gradual» but gave no nominal indication. There was no new details on when the Bank expects to start changing executive interest rates, besides stating their two core objectives must first be satisfied. Firstly, inflation must be above 2%, which is met; secondly, unemployment must reach full employment, which is around 4-4.5%, which has not yet been achieved. The speech was widely regarded as bullish.
Elsewhere the Evergrande liquidity crisis has eased with the company resolving its outstanding interest payment, dispelling threats of its collapse. Evergrande’s debt crisis will now likely remain localised.
Data from European business confidence was published today, which HC Andersen Chief Economist Bo Overvad assessed as «European business confidence remains acceptable – but diminishing». The numbers for both the PMI index of manufacturing and the services sector index fell below the market’s expectations. Crucially both numbers are above 50, signalling progress in both manufacturing and services, just at a decelerating rate. The PMI index of manufacturing dropped from 61.4 in August to 58.7, and the services sector index fell from 59 to 56.3.
Today’s snacks
Hypefactors gained 16.5% today following the announcement of an insider purchase from CEO Casper Janns. This Tuesday, he bought 20,000 shares corresponding to approx. DKK 100,000. News of his purchase was published in Børsen today, which ignited the day’s price rise.
Asetek today gained 11% to NOK 35.5 as the stock retraced from yesterday’s negative price action, falling 45% to NOK 32 following the company’s 2021 guidance downgrade and news of its exit from the high-performance computing sector. The downgrade is driven by supply chain struggles related to the Chinese lock-down in Xiamen, where Asetek has its contract manufacturer; elevated shipping costs are also a factor.
Disclaimer: HC Andersen Capital receives payment from the companies for a #DigitalIR agreement.
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Author: Philip Coombes
