market report
Status: 01/12/2023 07:42 a.m
The leading German index is at its highest level for almost a year. A few more points could be added today: The DAX bulls have the 15,000 points firmly in their sights.
In the morning, the DAX is about to surpass the psychologically significant mark of 15,000 points. The broker IG currently rates the German standard values 0.3 percent higher at 14,997 points.
Easing interest rate worries fuel DAX price rally
The furious rally at the beginning of the year does not appear to be over yet. The DAX uptrend is still intact. Yesterday it had increased 1.2 percent to 14,948 points. The leading index is thus at its highest level for almost a year.
Easing interest rate concerns are the main drivers of the current price rally. 77.2 percent of market participants are currently expecting a small interest rate hike of 25 basis points at the next Federal Reserve meeting on February 1st. Only 22.8 percent expect an increase of 0.5 percentage points.
That’s according to CME Group’s Fed Watch Tool. A month ago, 40.6 percent had bet on the small interest rate hike, while 48.9 percent were preparing for a 50 basis point hike.
US inflation data in focus
The market also seems to have long since decided that the inflation data due this afternoon before the US market opens is no longer a major threat. The risk that this data could be higher than expected is ignored.
Credit Suisse speaks of continued optimism about declining inflation and a correspondingly more moderate monetary policy by the US Federal Reserve. However, this is in contrast to the rhetoric of leading Fed actors, the experts reminded.
That is also the dark side of the recent price rally: investors have already leaned out the window very far, the prices have gone very far forward. The market is correspondingly susceptible to bad news.
Dow at new high for the year
Strong guidelines for DAX trading come from Wall Street. The New York Stock Exchange also hit new highs for the year. The Dow Jones index of standard values closed 0.8 percent higher at 33,973 points in the middle of the week. The tech-heavy Nasdaq advanced 1.8 percent to 10,931 points. The broad S&P 500 gained 1.3 percent to 3969 points.
Reluctance on Asian stock exchanges
On the other hand, investors on the Asian stock markets are holding back ahead of the forthcoming US inflation data. The Nikkei index, which comprises 225 stocks, was practically unchanged at 26,450 points at the close of trading in Tokyo. The Shanghai stock exchange was down 0.2 percent. The index of the most important companies in Shanghai and Shenzhen lost 0.1 percent.
Euro still clearly above 1.07 dollars
In Asian forex trading, the euro remains well above the $1.07 mark it hit at the start of the week. The declining US interest rate expectations are depressing the world’s leading currency, the dollar. Currently, 1.0764 dollars are paid for one euro. A troy ounce of gold costs 1884 dollars in the morning.
Oil prices hold recent gains
Meanwhile, investors’ increased risk appetite is also having an impact on the oil market. Prices for Brent and WTI oil rose by around three percent yesterday. In the morning, oil prices are holding their recent gains: Brent is still trading above $82, WTI oil is staying at a good $77.
News from the Morphosys hope in bone marrow cancer
Morphosys draws attention to itself on the German stock market. The biotechnology company has presented promising interim results on the currently most important hope in myelofibrosis, pelabresib. The rare bone marrow cancer is difficult to treat. A breakthrough in this area would therefore also be an economic success.
Apple is apparently working on Macs with touchscreens
In a departure from previous strategy, Apple could launch Mac computers with a touchscreen, sources say. The group is considering the year 2025 for this, wrote the financial service Bloomberg, citing insiders. At the same time, no final decision has been made on this and the plans could still be overturned.
Disney appoints Nike veteran as chairman of the board
Entertainment giant Walt Disney has appointed longtime Nike executive Mark Parker as the new chairman of its board of directors. After this year’s shareholders’ meeting, Parker is scheduled to succeed Susan Arnold, whose term of office is ending. Disney announced this last night after the US stock market closed.