The negative mood in America remained
The negative sentiment among American investors lasted until the close, and finally the Dow finished trading with a drop of 388 points, or 1.14%. The S&P 500 lost almost one and a half percent, and the nasdaq lost even more, 1.57%.
The mood continues to deteriorate, the Dow is down 400 points
There is no improvement in the US stock markets in less than an hour before the close, and in fact, the leading stock indices continue to weaken.
The Nasdaq is already down 1.65%, but the S&P isn’t doing much better either, with a 1.55% decline. The Dow Jones is already down 400 points.
America is down more than 1%
After the opening, the mood on the American stock exchanges did not improve either, all of the leading stock indexes are down more than 1%.
The Nasdaq is down 1.4%, the S&P 500 is down 1.3% and the Dow is down 1.1% from yesterday’s close. Investor sentiment is affected by the fact that US yields are rising, and scenarios related to the Fed’s interest rate cut predict an ever smaller interest rate cut, which is not good for share values.
America is in serious decline
The Nasdaq is down 1.2 percent, the S&P 500 is down 1.1 percent, and the Dow is down 0.9 percent.
The Hungarian stock market continues to gain
With the further deterioration of the international mood, the BUX retreated slightly from the morning highs, but the Hungarian index is still up by 0.6 percent.
American stock markets are falling
After the opening, the Nasdaq is down 0.7 percent, the S&P 500 is down 0.6 percent, and the Dow is down 0.4 percent.
America can open with a fall
According to the current state of the future stock indexes, the Nasdaq and the S&P 500 may both open 0.7 percent lower, and the Dow may open 0.6 percent lower.
The leading stock market remains under pressure
The DAX and the CAC are both down 0.8 percent before the opening of the American market, while the FTSE is up 0.1 percent.
Investors were not surprised by the decision
The interest rate decision basically did not surprise investors, after the Monetary Council left the base interest rate unchanged at 13 percent, as expected. However, at 3:00 p.m. in the announcement, they will be able to report on the possible simplification of the monetary policy toolkit, which the market is now waiting for. Here, the main question will be what will happen to the previous benchmark instrument, the one-day central bank deposit, and how to make the base interest rate the benchmark again. At the same time as the announcement, the MNB publishes its latest GDP and inflation forecast, which was also discussed today by the Monetary Council in the context of the inflation report.
A few minutes after the MNB’s interest rate decision, the mood on the Hungarian stock market is still great, mainly thanks to the march of the OTP, the BUX index is up 0.8 percent.
There are no big movements on the foreign exchange market either, the forint is currently 0.4 percent higher against the euro, currently 388 forints and 90 fils have to be paid for one euro.
OTP stands out from the field
The mood in the regional banking sector is basically good, with OTP leading the ranking with its 2.2 percent increase. It should be noted as an interesting fact that the investors of Erste, which is also competing for the Polish financial institution, were not happy with the development, the Austrian company’s share price is currently down 0.6 percent.
Cover image source: undefined undefined via Getty Images
The OTP jumps to the latest announcement!
As we reported, according to Polish newspaper reports, OTP is also in the running for a Polish bank for sale, Erste is also fighting to acquire VeloBank in addition to the Hungarian player. Investors received the news with bursting enthusiasm, the subscription is already up 2.4 percent.
Cover image source: Portfolio
The leading stock markets continue to fall
After the opening, the CAC is down 0.8 percent, the DAX down 0.6 percent, and the FTSE down 0.3 percent.
How does OTP react to Márton Nagy’s announcement?
In order to restore economic growth, instead of imposing a new bank tax, the government a expects a resumption of lending from the banking sector, Minister of Economic Development Márton Nagy said recently. According to the justification, “due to the advantageous position of the banking sector, it can be expected to cooperate more strongly in preventing the freezing of the credit market, in restoring healthy lending and growth.”
Last week, completely different winds were blowing, because on Thursday, Minister of Finance Mihály Varga a on the possible increase of the special tax for banks and he talked about the revision of the interest subsidy for subsidized loans – domestic bank shares started to hit the news, OTP closed over 6 percent down.
For now, investors are digesting the latest development, OTP shares are up 0.4 percent after the market opening.
The day can start in a bad mood
What are the current events on the stock exchanges?
- The leading American stock indexes closed yesterday with an increase, the Dow Jones ended the day up 0.1 percent, the S&P 500 rose 0.4 percent, while the Nasdaq closed up 0.5 percent.
- The Asian stock markets showed a bullish mood this morning, the Nikkei fell by 1.62 percent, the Hang Seng fell by 0.52 percent, while the CSI 300 rose by 1.02 percent.
- European stock markets may open in a bad mood, based on the future stock indices, the DAX may open 0.4 percent lower, the CAC may fall 0.7 percent, while the FTSE may fall 0.3 percent.
- The American stock markets may also open with a fall, based on the current state of the future stock indexes, the Dow Jones may fall by 0.3 percent, the S&P 500 may open by 0.37 percent, while the Nasdaq may fall by 0.45 percent.
What can be expected on the macro front?
Life at home starts today, as the second quarter balance of payments data will arrive from the central bank in the morning. However, the interest rate decision in the afternoon will be more important, since the Monetary Council of the MNB can merge the base interest rate and the reference rate, and the latest inflation and GDP forecast will also come. In America, the authorities announce a fresh index of consumer confidence.
|September 25-October 2023 1. Macro calendar|
|September||25.||Monday||8:30 a.m||KSH||I’m asking||July|
|September||26.||Tuesday||8:30 a.m||MNB||Balance of payments||Q2|
|September||26.||Tuesday||11:30 a.m||AKK||3-month dkj auction|
|September||26.||Tuesday||14:00||MNB||Interest rate decision|
|September||26.||Tuesday||14:00||MNB||Recent macroeconomic forecasts|
|September||28.||Thursday||8:30 a.m||KSH||Industrial producer prices||aug.|
|September||28.||Thursday||8:30 a.m||KSH||People’s movement||aug.|
|September||28.||Thursday||10:00 a.m||MNB||Inflation report|
|September||29.||Friday||8:30 a.m||KSH||Employment, unemployment||aug.|
|September||25.||Monday||10:00 a.m||German.||IFO index||Sept.|
|September||26.||Tuesday||4:00 p.m||USA||Consumer confidence||Sept.|
|September||27.||Wednesday||2:30 p.m||USA||Ordering consumer durables||aug.|
|September||28.||Thursday||2:30 p.m||USA||GDP (revised)||Q2|
|September||29.||Friday||8:00 a.m||UK||GDP (revised)||Q2|
|September||29.||Friday||8:00 a.m||German.||Retail trade||aug.|
|September||29.||Friday||2:30 p.m||USA||PCE inflation||aug.|
|September||30.||Saturday||3:00 a.m||China||NBS purchasing manager index||Sept.|
|Source: Portfolio collection|
What has happened on the stock markets so far?
- Among the leading American, Asian, European and regional stock indexes this year, the Nasdaq index is at the top with a 35.0 percent shift, the Hang Seng index is the driving force with a 10.4 percent fall.
- Magyar Telekom’s share performed the best among domestic blue chips this year with a 54.3 percent increase, followed by Mol’s paper with a 6.6 percent increase.
- Among the more important raw materials, the price of WTI has risen by 13.0 percent since the beginning of the year.
|More important instruments|
|Exchange rate||One day||1 week||1 month||This year||1 year||5 years|
|US stock indices|
|Asian stock indices|
|European stock indices|
|Regional stock indices|
|Hungarian blue chips|
|10-year US Treasury yield||4.54||2.6%||5.3%||7.0%||18.5%||22.9%||46.6%|
|10-year German government bond yield||2.76||2.0%||2.6%||9.2%||7.7%||36.1%||405.7%|
|10-year Hungarian government bond yield||7.15||0.7%||2.4%||-3.5%||-22.7%||-23.8%||94.8%|
|Source: Refinitiv, Portfolio|
Cover image source: Getty Images