Market report
Status: 05.07.2021 07:47 a.m.
The DAX should start the new week cautiously. Support is once again coming from Wall Street: New records in New York and, last but not least, the holiday effect strengthen the back of the DAX.
The DAX is largely immobile in the morning. Banks and brokers estimate the German benchmark index at the hour close to its closing price on Friday evening (15,650 points).
The stalemate between bulls and bears continues. Only a break above the 15,709 mark on the upper side, where the two most recent daily highs are, could give the DAX a new impetus towards the record high (15,803 points). On the downside, if it fell below the 15,500 mark, sellers would gain the upper hand.
Price gains thanks to “Independence Day”?
Meanwhile, there is a real tailwind for the German standard values from Wall Street. There, investors started the long weekend with new records on Friday.
Today the American stock exchanges remain closed because of the postponed US Independence Day (4th of July). Before and after public holidays, the statistical probability of price gains is increased; market observers often explain this holiday effect with the more relaxed attitude of investors.
S&P 500 with seventh record high in a row
On Friday, both the Nasdaq indices and the S&P 500, which tracks the broader market, reached new highs. For the S&P 500 it was even the seventh record high in a row. The Dow Jones Industrial was still unable to set a new record, but is increasingly catching up.
At the end of the trading day, the Dow was up 0.4 percent to 34,786 points. The S&P 500 advanced 0.8 percent to 4,352 positions. The Nasdaq 100 technology selection index rose 1.2 percent to 14,728 points.
The perfect US labor market report – for the markets
A strong recovery in the American labor market fueled the record run of the stock exchanges. The US economy created more jobs than expected in June. Nationwide, 850,000 jobs were added outside of agriculture, according to the US Department of Labor. The unemployment rate rose slightly compared to the previous month by 0.1 points to 5.9 percent and thus missed the consensus estimate.
The data was good, but not too good. If all the data had turned out better than expected, this would have sparked new fears of inflation in the markets and thus speculation about an imminent throttling of the expansionary monetary policy.
Nikkei in the red
“Conditions are good to drive stocks around the world further,” said Kyle Rodda, market analyst at IG in Melbourne. On most Asian stock exchanges, prices rise at the beginning of the week. Only the Japanese Nikkei is resisting the trend and is trading 0.5 percent lower around half an hour before close of trading in Tokyo.
The euro is trending sideways in Asian forex trading at $ 1.1856. On Friday, the European common currency fell to $ 1.1815, its lowest level in almost three months. The troy ounce of gold costs 0.1 percent more at $ 1,787.
OPEC + still in focus
Oil prices posted slight losses in the morning. The price of a barrel (159 liters) of North Sea Brent is down 0.1 percent to $ 76.06. The oil market continues to focus on the OPEC oil cartel and its partner countries.
OPEC + is making a fresh attempt today to reach an agreement on the future funding strategy from August. Previously, on two tough days of negotiations, the alliance had not been able to agree on which country will be allowed to produce how much oil in the future. While Saudi Arabia is advocating a cautious line, the United Arab Emirates intend to increase funding vigorously.
Lufthansa again with more business trips
Among the individual stocks on the German stock market, Lufthansa could be worth a look today. At the MDAX company, the demand for business trips is growing due to the lower number of corona infections. “We are currently experiencing a comeback of business travel. In Germany and Europe in particular, business demand for air travel is clearly increasing again,” said Lufthansa board member Harry Hohmeister of “Welt am Sonntag”. “For four weeks we have been registering increased demand for business flights for September, October and November. That is a clear signal.”
Bezos – rather a space pioneer than Amazon boss
After almost three decades at the helm of Amazon, founder Jeff Bezos is handing over management of the company to his successor Andy Jassy. Bezos remains chairman of the board of directors and is likely to have a decisive influence on the future of the group. The 57-year-old says he wants to devote himself more to other projects in the future, such as his space company Blue Origin. On July 20, he plans to personally take part in the company’s first manned flight into space.