Market report
Status: 12.01.2022 07:35 a.m.
The DAX maintained yesterday’s momentum this morning. The equity markets continue to recover after the US Federal Reserve chairman said he was positive about the US economy. The round thousand mark is recaptured.
In pre-market trading, the German benchmark index is valued at 16,040 points at the start, which corresponds to an increase of around 100 points or 0.6 percent compared to yesterday’s XETRA close.
Tech values with a lot of momentum
On Wall Street, prices rose significantly again in the evening. Technology stocks in particular rose. The Nasdaq 100 index now gained 1.47 percent to 15,844 points. The leading index Dow Jones Industrial rose by 0.51 percent to 36,252.02 points. The market-wide S&P 500 posted an increase of 0.92 percent to 4713 points.
US Federal Reserve Chairman emphasizes the strength of the US economy
Statements by the head of the US Federal Reserve (Fed), Jerome Powell, created new optimism on the floor. In view of the good economic development in the USA and the high inflation rate, Powell signaled an increase in the key interest rate for the period from March onwards. The Federal Reserve (Fed) will complete its billion dollar bond purchases in March and then “raise the key rate during the year,” Powell said at a hearing in the US Senate. Powell emphasized that the labor market has largely recovered from the Corona crisis. At the same time, he left no doubt about using all instruments to reduce inflation.
“Even if the words prepare the ground for a first rate hike in the near future, investors should interpret the change in monetary policy that has been initiated as a sign of strength and confidence in future economic growth,” commented analyst Konstantin Oldenburger from online broker CMC Markets. Tonight, German time, the Fed will present its economic outlook, the Beige Book.
Asian stock exchanges mostly stronger
The Asian exchanges reacted positively to Powell’s remarks in the morning. The Japanese Nikkei index finished trading 1.9 percent higher at 28,746 points. The broader Topix index rose 1.4 percent to reach 2015 points. “The Japanese market rose because investors who had been short in advance of Powell’s statements bought them back,” said Takatoshi Itoshima, strategist at Pictet Asset Management. The Shanghai stock exchange was up 0.4 percent. The index of the most important companies in Shanghai and Shenzen, however, dropped 0.4 percent.
The euro gains against the dollar
On the foreign exchange market, the euro is groping its way further against the dollar. In the morning, the common currency traded at $ 1.1373 and appears to have broken out of its week-long sideways movement on the upside. Oil prices continue to rise slightly. A barrel of North Sea Brent costs $ 83.50 in the morning. The troy ounce of gold is quoted little changed at $ 1,820.
Car manufacturers present sales figures
In the DAX, the stocks of the German car companies could be in focus during the day. VW, Daimler and BMW will present figures on vehicle sales in 2021. VW had already reported a sharp drop in deliveries in China on Monday.
Facebook with setback in court
The competition lawsuit, with which the US government wants to smash Facebook, has been accepted in the second attempt by a court in Washington. Judge James Boasberg dismissed the first version last summer, citing insufficient reasoning. In the case, which has now been amended, he sees the allegation of unfair competition better justified, as was evident from Tuesday’s court documents. The FTC (Federal Trade Commission) accuses Facebook, among other things, of a monopoly position in the market for online networks.
Sales record for Tesla in China
The US electric car maker set a sales record in China at the end of the year. In December, Tesla sold 70,847 vehicles made in China, the highest monthly rate since production started in Shanghai in 2019, according to the Chinese Association of Passenger Cars (CPCA). This means that December sales, including 245 vehicles for export, were almost three times as high as in the same month last year. According to Reuters calculations, the US group sold 473,078 vehicles produced in China last year.
Boeing outstrips Airbus
The US aircraft manufacturer Boeing has significantly improved its order balance last year thanks to a comeback of the crisis pilot 737 Max and a recovery in the industry from the Corona crisis. According to its own information, the Airbus rival received a total of 909 aircraft orders on Tuesday last year – more than twice as many as in the two previous years combined. Taking into account cancellations and rebookings, the bottom line was 535 orders. The day before, Airbus announced 507 net orders for 2021.