HCA Market Close: 14/12-2022: Featuring Danske Bank and Hydract
HCA Market Close 14.12.22 – Danske Bank finally resolves its Estonia matters, while Hydract announce a new order.
Market Movements:
Denmark: OMX:C25 (+0.47%) ; Sweden: OMX:S30 (+0.08%) ; Norway: OBX:OSL (-1.35%) ; S&P 500 (+0.54%) ; Nasdaq (+0.68%); Stoxx 600 (-0.02%)
Market Drivers:
Markets gain as Treasury yields fall in anticipation of the Fed rate hike decision and Jerome Powell’s speech.
Markets have moved higher since October on the narrative that inflation has peaked and the Fed can begin taking its foot off the gas with respect to rate hikes. Markets are anticipating a 50 basis point move higher from the Fed later today, with the big unknown, the future path. Markets will be closely watching Jerome Powell’s accompanying speech, which can guide the Fed’s future direction.
In Europe, markets fell back as the ECB will make its own rate hike decision tomorrow. Markets expect that a more dovish Fed (less aggressive rate hikes), will give the ECB more room to hike rates further. There was some positive inflation news from Europe today as UK reported a slowing pace of inflation, with consumer prices increasing 10.7% year on year in November, against expectations of 10.9% and an October reading of 11.1%.
Snacks from the HCA Platform:
Despite the resolution with the US and Danish authorities on the Estonian matters, shares of Danske Bank only reacted with a small increase of +1.2% in today’s market. Most likely as the share price had already gone up by around 25% since late October 2022, when it was first revealed that a settlement was nearing. However, Danske Bank is still valued at a substantial discount to its Nordic peers, but it is uncertain when this valuation gap will diminish. Danske Bank will report its annual numbers for 2022 on the 2nd of February, 2023.
Today, Hydract announced a new order on its Basic valves for Carlsberg’s brewery in Fredericia. The order does not change the guidance for the year, as revenue in 2022 will be based on a completion rate, implying that the order is not expected to be physically installed until the beginning of 2023. Hydract has installed over 600 valves at Carlsberg’s brewery in Fredericia, including the Hydract Advanced facility, which started producing in March 2021.
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