Fears of recession and the issue of gas supply are likely to have the stock markets firmly in their grip in the new week. Scheduled maintenance work on the Nord Stream 1 pipeline will begin on Monday. It is scheduled to end on July 21. However, it is currently uncertain whether Russia will turn on the gas tap again afterwards. Gas prices have risen sharply since Russia’s attack on Ukraine, which has also weighed heavily on the stock market in this country. With Uniper, a German gas supplier has already had to ask the state for help.
Fears of recession and the issue of gas supply are likely to have the stock markets firmly in their grip in the new week. Scheduled maintenance work on the Nord Stream 1 pipeline will begin on Monday. It is scheduled to end on July 21. However, it is currently uncertain whether Russia will turn on the gas tap again afterwards. Gas prices have risen sharply since Russia’s attack on Ukraine, which has also weighed heavily on the stock market in this country. With Uniper, a German gas supplier has already had to ask the state for help.
A robust US labor market ensured a conciliatory end of the week on the German stock market on Friday. Employment in the US expanded significantly more than expected in June. This helped the Dax to gain 1.34 percent to 13,015.23 points. He left the 13,000 mark behind again. On a weekly basis, that means an increase of one and a half percent.
However, the prospects for the German stock market, which is dominated by industrial groups, are anything but rosy. The Dax has recently come under much more pressure than other indices: it has lost almost 13 percent since the most recent recovery high in early June. The US leading index Dow Jones Industrial lost less than half as much during this period. The leading eurozone index, the EuroStoxx 50, has also held up better.
The inflation data from the USA should also be worth a look in the new week. The consumer and producer prices are published in June. Chief strategist Ulrich Stephan of Deutsche Bank predicts that inflation will remain high until the end of the year. Inflation is slowing growth, and the Fed is countering this with sharply rising interest rates. At the end of 2023, inflation will still be over three percent – “and therefore still too high from the Fed’s point of view”.
On the company side, the season of quarterly reports is still a long time coming. It is true that large US banks like JPMorgan, Morgan Stanley and Citigroup publish their annual reports. However, their influence on the local stock market should be limited. The design of the state aid package for Uniper should be exciting.
