Price gains on the stock exchange: The leading German index Dax was slightly up on Friday with 15,803 points. Allianz shares were among the biggest winners, up 2.8 percent. Europe’s largest insurance group is aiming for a record profit this year. On the losing side were the stocks of Deutsche Bank and Continental, which were each a good one percent cheaper.
There was a positive start to trading on Wall Street: the prospect of sustained strong US economic growth is lifting important indices there to new record highs. The Dow Jones standard value index and the S&P 500 rose 0.5 percent to 35,223.28 points and 0.2 percent to 4438.53 points, respectively.
One reason: the situation on the US labor market brightened more strongly than expected in July. 943,000 new jobs were created outside of agriculture, as the government announced in Washington on Friday. Economists had only expected 870,000. In addition, the June figures have been revised upwards significantly, from 850,000 to 938,000. The separately determined unemployment rate fell in July to 5.4 percent and thus more clearly than expected.
Almost ten million vacancies in USA
Due to an acute labor shortage, companies are currently unable to fill a record 9.2 million positions. This forces them to raise wages. The average hourly wages in July increased by 0.4 percent compared to the previous month, compared to the same month last year by as much as 4.0 percent. The financial markets keep a close eye on the numbers. A sustained recovery on the job market is an important prerequisite for the central bank to be able to reduce its start-up aid for the economy ravaged by the corona pandemic in the foreseeable future.
Dax, Dow and stocks at a glance: Here you go to the stock exchange page
Allianz and Covestro asked for numbers, outlook raised
The plastics group Covestro wants to keep the rate of growth high in the coming months. The annual target of an operating profit (Ebitda) of 2.7 to 3.1 billion euros, which was raised in July, was confirmed. On the trading platform Tradegate, the shares rose by 0.7 percent.
Allianz shares could soften a previously gloomy week of trading. An improved outlook for the current year and announced share buybacks let investors take hold of it again: on Tradegate, the price advanced by 2.0 percent. On Monday, a price slide due to a warning of possible burdens in the US wealth management business had pushed stocks to a low since early February, from which they are now recovering.
Bitcoin surges above $ 42,000
Meanwhile, the price of the digital currency Bitcoin has continued to recover and climbed well above the $ 42,000 mark on Friday afternoon. Most recently, the world’s largest cryptocurrency increased by almost 10 percent to $ 42,830. Bitcoin came under pressure on Wednesday after some critical statements by the US Securities and Exchange Commission. Within three weeks, the cryptocurrency has gained more than 25 percent in value.
Recently, statements by the US Securities Exchange Commission (SEC) have moved into the focus of investors in digital currencies. The new head of the stock exchange supervision, Gary Gensler, had provided indications of the possible approval of a Bitcoin ETF. That is actually positive for the course. Gensler also made it clear that such a security must meet the strict requirements of the SEC in order to guarantee the necessary protection for investors. Gensler also pointed out that there is currently not enough protection for investors in cryptocurrencies. He described the current state as “more like the wild west”.
Oil prices stop falling
Oil prices moved comparatively little on Friday. A barrel (159 liters) of North Sea Brent cost $ 71.44 that morning. That was 15 cents more than the day before. The price of a barrel of the American West Texas Intermediate (WTI) rose 10 cents to $ 69.19.
Oil prices have remained in a tight trading range since the previous evening. In the financial markets, investors are waiting for the publication of important economic data in the USA. In the afternoon, the US government’s labor market report for July is on the agenda. The situation on the labor market is expected to improve. The market is paying close attention to the data because the US Federal Reserve is also aligning its monetary policy to developments on the labor market.
On a weekly basis, however, oil prices have fallen significantly. The losses could not be stopped until Thursday, with the price of US oil falling by more than five percent since Monday. The cause of the sharp drop in prices in the first half of the week was concerns about restricting mobility to contain the delta variant of the corona virus. This could jeopardize the current economic recovery, including in China, one of the world’s most important oil importers.