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LIVE MARKETS-Challenging Tesla in the stock market

· 03/17/2021 07:21
LIVE MARKETS-Challenging Tesla in the stock market

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German carmakers' efforts to challenge the the world’s leader in electric vehicles Tesla TSLA.O are starting to pay off also in the stock market, it seems.

Deutsche Bank analysts recall that yesterday big tech stocks did well despite rising interest rates, with retail favourites still on the rise with one notable exception.

"One such favourite Tesla (-4.39%) was down on the day though and it must be significant that VW's preferred shares rose +6.71% on the company's plans of how they can beat Tesla to be the world's leader in electric vehicles," they say.

Below the chart of Volkswagen (orange) and Tesla (blue) stocks in the recent days.

It seems that retail investors have targeted Europe after Volkswagen announced its ambitious plans on electrical driving. nL1N2LE1MU nL8N2LE0WX

BMW BMWG.DE said today it expects at least half of its sales to be zero emission vehicles by 2030, setting a more conservative target than some rivals in the race to embrace cleaner driving. nL1N2LF0ED

(Stefano Rebaudo)



European STOXX 600 index is just below the floating line with autos stocks still on the rise after yesterday’s jump, while commodities related stocks are in negative territory.

More good news is boosting the autos stock index .SXAP, which is up 1.4%, hitting a fresh two-year high.

Shares in BMW BMWG.DE are up 4.4% after the company said it expects a significant year-on-year increase in group pretax profit in 2021. nL1N2LA2EI

Volkswagen’s ambitious expansion plans in electric driving are also boosting the sector. Its shares are rising 2.3%.

Basic materials SXPP and oil and gas .SXEP are among the worst performers after their recent rally.

The STOXX 600 index .STOXX is down 0.2%.

Financial markets across the globe are on hold ahead of the Fed policy meeting outcome, which is expected to give clues about next central bank’s moves on interest rates.

Eyes also on this week's first high-level, in-person contact between Beijing and Washington since U.S. President Joe Biden took office.

(Stefano Rebaudo)



It's Federal Reserve day and market focus is on the central bank's rate-hike projections for 2023 in the so-called "dot plot."

Some economists expect this to show the Fed now expects one rate hike for 2023 versus none in December. An unchanged median dot for 2023 could be interpreted as the Fed pushing back against higher bond yields and markets' pricing of rate hikes.

The Fed will deliver its statement and economic forecasts at 1800 GMT, followed with a news briefing. Until then, barring unforeseen events, markets will likely stay calm. Ten-year U.S. yields are just off 13-month highs US10YT=RR, the dollar index =USD is little changed and equity futures are a touch lower ESc1, NQc1.

The tone across world stocks is cautious too, with Asian stocks tracking Wall Street's Tuesday fall and European markets too set to open softer STXEc1.

In the euro zone, it's the final day of voting in the Dutch national election -- the first major general election in the EU since the pandemic began.

Prime Minister Mark Rutte's VVD Party is expected to secure a fourth term, but there is a risk markets are not adequately pricing gains at the ballot for anti-establishment forces.

Some good news for AstraZeneca AZN.L as Australia's pharmaceutical regulator said the rollout of the company's COVID-19 vaccine would continue, despite many European nations pausing vaccinations to investigate reported side-effects.

The EU regulator will release findings on Thursday.

Elsewhere, Credit Agricole Italia CAGR.PA has secured a green light from European Central Bank supervisors for its planned takeover bid of third-tier Italian lender Credito Valtellinese PCVI.MI nL8N2LF1FK.

Key developments that should provide more direction to markets on Wednesday:

- Fed monetary policy decision and news conference.

- German, UK German new car registration data.

- US housing starts data due.

- Corporates: BMW said it expects a significant year-on-year increase in pretax profit; Raiffeisen Bank aims to distribute 20%-50% of consolidated net profits; retail investment platform Hargreaves Lansdown 2021 profit to beat expectations.

- Italy's biggest insurer Generali GASI.MI is studying an acquisition in Russia worth nearly 2 billion euros ($2.4 billion), according to a media report. nL8N2LF0Y5

(Dhara Ranasinghe)



European stock futures are broadly unchanged along with their U.S. peers as financial markets across the globe are on hold before the U.S. Federal Reserve policy meeting outcome.

Investors are waiting for cues about central bank’s future moves on interest rates after a jump in government bond yields triggered by expectations of stronger than expected economic growth and inflation.

Market will be closely watching also the first high-level in-person contact between Beijing and Washington since U.S. president Joe Biden took office. The meeting among Chinese and U.S. officials will take place in Alaska on March 18 and 19.

(Stefano Rebaudo)


Federal Open Market Committee Projectionshttps://tmsnrt.rs/3eJVKCI