13.09.2024

Friday the 13th + ECB cuts interest rates as expected + Technology stocks benefit + Unity Software changes policy + Gold hits new ATH

The European Central Bank (ECB) has reacted to the slowdown in inflation in the eurozone. The deposit rate, which sets the trend on the financial market, has fallen by 0.25 percentage points to 3.5 percent, as the central bank announced on Thursday. The ECB is thus making progress with the interest rate turnaround it began in June. According to the ECB, economic growth in the eurozone will be somewhat weaker than recently expected.

The interest rate-sensitive technology shares were therefore among the main winners. Only the US producer prices published in the meantime dampened the good mood somewhat. They rose slightly more sharply in the core rate than in the previous month.

Shares of the video game software manufacturer Unity Software $U (-0,44%) rise 7.2% to $18.45

• Unity is scrapping the "term fee," a pricing policy, effective immediately
• CEO Matt Bromberg says the company can't pursue its mission in conflict with its customers; price increases don't have to be in a "novel and controversial" form
• Unity had planned to charge developers a fee each time their game was installed after reaching certain milestones, such as revenue
• The company had already rolled back key parts of this policy last year after its main users, small and independent developers, decided to boycott its platform
• The stock had fallen ~58% by the last closing price

The gold price hit a new all-time high on Thursday. After the ECB cut key interest rates for the eurozone by 25 basis points as expected, the precious metal jumped above the previous record price of 2,531 dollars. However, something else may have been much more decisive than the interest rate cut itself. The interest rate cut was not a big surprise and was very likely already priced into the market. In contrast, investors do not appear to have expected a lower forecast for future economic growth. The ECB is forecasting growth of 0.8% for 2024 (previously 0.9%), 1.3% for 2025 (previously 1.4%) and 1.5% for 2026 (previously 1.6%).

Friday: Stock market dates, economic data, quarterly figures

ex-dividend of individual stocks

Coca-Cola USD 0.49

Albemarle 0.41 USD

Gilead Sciences USD 0.77

Frontline USD 0.62

Economic data

• 06:30 JP: Industrial Production 7/24 (final) | Capacity Utilization 7/24
• 09:00 DE: Bundestag, continuation of budget deliberations, Berlin
• 09:30 EU: Eurogroup meeting in Brussels
• 11:00 EU: Industrial Production July Eurozone FORECAST: -0.3% yoy/-3.0% yoy previous: -0.1% yoy/-3.9% yoy
• 11:30 DE: Government Pk, Berlin
• 14:30 US: Import and export prices August import prices FORECAST: -0.2% yoy previous: +0.1% yoy
• 16:00 US: Consumer Sentiment Index Uni Michigan (1st survey) September FORECAST: 68.4 previous: 67.9