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Global Economy

Nothing works anymore

It almost seems as if trading activities in the run-up to the international meeting of central banks in the USA have come to a standstill. In the middle of the week, the stock markets took a deep breath after three days of losses. The Dow Jones posted a meager plus of 0.18 percent.

On the Nasdaq technology exchange, investors ventured a little further. The Nasdaq 100 recovered 0.28 percent.

The economic data of the day, which gave a little dynamic picture, did not weigh on the prices. Durable goods orders were flat in July compared to the previous month, while economists had actually expected a slight pick-up.

The number of so-called pending home sales, i.e. transactions that have not yet been completed, fell in July by 1.0 percent from the previous month, a slightly smaller decline than expected. "For the current real estate cycle, we could be at or near bottom in signings," said NAR chief economist Lawrence Yun. The pending house sales are considered an indicator for the housing market, as they reflect the situation at an early stage in the transaction process.

DAX catches up

The German stock exchange was also able to record slight gains after the mix of energy crisis, inflation, fears about the economy and interest rates had hit the markets for three days. The DAX closed 0.2 percent higher at 13,220 points.

Central banks in a dilemma

As has been the case for days, investors are primarily waiting for what statements will be made tomorrow at the central bank symposium in Jackson Hole, Wyoming. The speech by Fed boss Jerome Powell on Friday's interest rate course is being eagerly awaited. "The fact is that Jackson Hole has occasionally been used in the past as a platform to send clear messages to the markets that have not always been the expected ones," said broker Oanda analyst Craig Erlam.

The statements by Powell and other top central bankers could shape the development of the financial markets for the next few weeks, said market strategist Christian Henke from the trading house IG. "Above all, investors are looking for answers on the progress made in fighting inflation." Market participants are divided on whether the Fed will hike interest rates by 50 or 75 basis points at its late September meeting.

Recent weak economic data has highlighted the dilemma facing central bankers. On the one hand, they have to fight inflation, which is not least driven by energy prices, although they have no influence whatsoever on this key driver. On the other hand, they have to protect the economy, which is under great stress, as much as possible. In addition, the tighter interest rate also harbors major risks for other countries, especially the heavily indebted emerging markets.

Port workers get 9.4 percent more wages

Fears of inflation could be fueled by the surprisingly high wage agreement for port workers in this country. Because the wages in full container companies are to increase retrospectively from July 1 by 9.4 percent, as the service union ver.di announced after the tenth round of negotiations. So far, second-round effects in the inflation discussion have hardly been on the agenda of the markets and especially the ECB. That could now change and thus put the European central bank under further pressure to act.

Euro rears up

Oil prices near $100

US crude oil inventories fell more-than-expected last week. Inventories fell by 3.3 million to 421.7 million barrels (159 liters). Analysts had expected a drop of 2.5 million barrels.

Meanwhile, the situation in the gas market worsened due to new delays in the supply of liquefied natural gas (LNG) from the USA. The European gas future jumped by more than 15 percent to the record value of 300 euros per megawatt hour. "Prices have risen, helped by the announcement last night of the delayed restart of the US Freeport LNG plant," analysts at Engie EneryScan said.

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Peloton relies on cooperation with Amazon

Twitter under pressure to explain

Covestro criticizes gas surcharge

Uniper and E.ON plan hydrogen partnership

Accordingly, the companies are each aiming for a purchase agreement for up to 500,000 tons of green ammonia per year. Ammonia is a chemical compound of nitrogen and hydrogen and is easier to transport than pure hydrogen.

Trend reversal at CTS Eventim

In view of the uncertain course of the pandemic, CTS Eventim boss Klaus-Peter Schulenberg does not want to venture a forecast for 2022. However, as long as further corona developments and the Ukraine war and its consequences do not result in any significant burdens, the result should be significantly higher than last year.

IBU-tec is growing strongly

Moderna is also submitting an application for the Omicron vaccine

Meanwhile, the European Medicines Agency (EMA) is testing a Corona vaccine from BioNTech/Pfizer that has been adapted to the current Omicron variants BA.4 and BA.5. A spokesman for the authority said that this was done as part of a so-called rolling review process. Results are already evaluated if no complete study data is available and approval of the vaccine has not yet been applied for.

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