DAX hovers around 25,000 points – KNDS postpones IPO and investors await US jobs report

Franco-German tank maker KNDS is postponing its IPO in light of losses in defense stocks. The company had originally planned to go public on the Paris and Frankfurt stock exchanges before the summer break starting in mid-July. The shareholders had informed the company that they wanted to resume the listing plans only once the market environment for European defense stocks improved, KNDS announced.

KNDS postpones the IPO

KNDS is currently owned by the German family behind Krauss-Maffei Wegmann and the French state. KNDS was formed in 2015 through the merger of Krauss-Maffei Wegmann and the French company Nexter. The next window will now open at the earliest in September, when investors return. The German government is sticking to its plans to take a stake in KNDS, although these are likely to be delayed by the postponement.

In light of the inflation surge in the US triggered by the Iran war, many investors expect the Fed to raise interest rates during the year under its new chief Kevin Warsh. He would, however, stick strictly to the Federal Reserve's two-percent inflation target despite US President Donald Trump's call for rate cuts and disappoint all those expecting a loose monetary policy, Warsh had stated. US Fed chief Kevin Warsh had said that inflation risks had recently weakened.

US Fed sticks to inflation target

The highlight of the day is the release of the US employment data for June. Experts surveyed by Reuters expect job growth of only 110,000, after 172,000 in May. Others expect an increase in employment of 115,000. The unemployment rate is expected to remain at 4.3 percent. Private companies created 98,000 net new jobs in June; economists had expected 110,000 new jobs.

Jobs report in focus

The US Federal Reserve is keeping a close eye on this indicator, as the monetary guardians are tasked with ensuring full employment and stable prices. Against this backdrop, today's monthly US jobs report for June is being eagerly awaited. On Friday, US stock exchanges will remain closed due to Independence Day celebrations on July 4.

On the previous day, US indices presented a mixed picture. The Dow Jones index of standard values closed unchanged at 52,305 points. The broader S&P 500 lost 0.2 percent to 7,485 points. The Nasdaq technology exchange index fell 0.7 percent to 26,044 points.

Bayer bundles glyphosate business

On the corporate side, Bayer is bundling its US business with the controversial weedkiller glyphosate into a standalone unit. Ruveon LLC is to be based in St. Louis, Missouri, as part of the Bayer Group and will be responsible for everything from pricing and market launch strategies to production and logistics for all aspects of the US glyphosate business. On Tradegate, the shares are trading 1.4 percent higher.

In trading, there is talk of a positively received post-close pre-close call from Continental. The company had also expressed confidence in achieving its full-year targets. In the morning, Kion is holding a pre-close call.

On the commodity and currency markets, movements were mixed. Brent is now trading only just above the $70 per barrel mark. Brent/ICE 70.85 -1.0 -0.72 71.57. WTI/Nymex 67.93 -1.0 -0.65 68.58. Gold 4,068.69 +1.0 38.80 4,029.89. Silver 59.91 +1.3 0.77 59.14. Platinum 1,612.37 +2.3 35.50 1,576.87. Bitcoin/USD 60,457.39 +0.6 379.52 60,077.87 60,248.76. EUR/USD 1.1386.