Late Snack fra HC Andersen Capital

Welcome Snackers, today’s snack will cover the market developments of Copyright Agent and Asetek.

Today’s Market Movements

Denmark:
OMX:C25 (+0.72%)

Sweden:
OMX:S30 (-0.43%)

Norway:
OBX:OSL (-0.90%)

S&P 500 (+0.86%)

Nasdaq (+1.19%)

European markets fell slightly today. Earnings season has been the primary driver behind recent gains and today it appears the earnings season push has run out of steam. The major theme in the markets today is a return of inflation. This comes as the ECB decided to keep its bond-buying programme unchanged – it remains around the €80bn-a-month. On the flip side European gas prices dropped today as Vladimir Putin told Gazprom, Russia’s largest gas supplier, to fill its reserves. However, some analysts believe Russia is near max supply at current; the true effect of Putin’s statement is yet to be seen.

In the US economic data was mixed. The US announced a new pandemic-era low for new jobless claims. However, analysis of earnings reports today revealed problems are developing from supply chain issues for many industries outside of tech. The Russel 2000, considered Americas mid-cap index fell 2%. This perhaps gives a truer reflection of America’s economy at the moment given the S&P 500 is skewed to a large degree by the FAANG stocks and other tech giants that have had strong earnings in Q3. Inflation will undoubtedly remain a contentious topic for the coming weeks as predictions regarding eventual interest hikes also take focus.

Today’s snacks

Copyright Agent gained 2.26% today after it announced its first Australian customer, opening up a new continent. The stock continues to trade subdued after its summer IPO. This is despite an upgrade and 3 recently announced customers

Asetek gained 5.8% today after it reported its Q3 2021 earnings this morning, and as expected following the downgrade in September the numbers were somewhat soft. A combination of supply chain issues, Covid-19 and power outage etc. have meant a difficult year for Asetek thus far. Further developing costs, related to the new Sim Sport segment, and cost from closure of the High-Performance Computing (HPC) in the Data Centre segment has also had its toll on earnings this year. However, markets seem to have exaggerated the challenges in Asetek’s share price as the stock closed with a price of NOK 43.9, off its 6 October low of NOK 30.5.

Disclaimer: HC Andersen Capital receives payment from the companies for a #DigitalIR agreement.

Author: Philip Coombes