market report
Status: 07/25/2022 07:39 a.m
The DAX is still consolidating its recent 1000-point rally. On the first trading day of the new stock market week, the leading German index should initially go downhill.
Negative specifications from the overseas stock exchanges put the leading German index under pressure at the start of the new week. The broker IG assesses the German standard values 0.7 percent lower at 13,166 points.
The consolidation in the DAX continues. In the previous week, the DAX had gained a whopping 3.0 percent. At its peak, the price gains since the striking low at 12,434 points have even amounted to over 1000 points.
DAX recovery trend intact – for now
The bottom line is that the recovery trend is still intact, so that from a technical perspective the DAX has a good chance of continuing on its way north once the current consolidation is complete.
The technical analysts at HSBC meanwhile see the current consolidation in the DAX as “rather unproblematic”. Only a slide below the holding zone above 12,900 points – this is where the recently broken downward trend has been running since the beginning of June – would worry them. “Below that, the view would then turn south again and the hope of an end to the bear market would be lost.”
Gas and Italy uncertainties
Also from a fundamental perspective, many negative factors and uncertainties are forcing investors to exercise restraint at the beginning of the week. Some economists and analysts have doubts that the natural gas supplies that Russia resumed last week will now be permanent.
There are also concerns about the political future of Italy, where early elections are to be held at the end of September. This has recently caused Italian yields to rise, and the yield gap (spread) to Bunds has widened. It is quite possible that the ECB’s new anti-fragmentation instrument will have to be deployed more quickly than the monetary watchdogs would like.
Fed meeting in focus
The forthcoming meeting of the US Federal Reserve this week is also causing uncertainty among investors. The Fed raised interest rates by 0.75 percentage points in June – the largest rate hike since 1994.
According to many experts, the currency watchdogs around Jerome Powell are now likely to take another step of this unusual magnitude on Wednesday. US Treasury Secretary Yellen told NBC TV yesterday that inflation was “way too high”. The Fed’s recent steps are helpful in combating them.
Dow Jones weakened
Negative guidelines for DAX trading come from overseas stock exchanges. Disappointing company figures from the tech sector had clouded the mood on Wall Street on Friday. The Dow Jones index of standard values closed 0.4 percent lower at 31,899 points. The broad S&P 500 lost 0.9 percent to 3961 points.
Significant losses on the Nasdaq
The technology-heavy Nasdaq stood out negatively with a minus of 1.9 percent to 11,834 points. Weakening advertising revenue caused shares in Snapchat operator Snap to fall 39 percent to their lowest level in more than two years.
Economic fears weigh on Nikkei
Against the background of the weak performance of Wall Street, the Asian markets also initially lost ground today. Concerns about a global economic downturn are sapping risk appetite among investors. The Nikkei index, which comprises 225 values, was 0.8 percent lower at 27,705 points. The Shanghai stock exchange was down 0.2 percent.
Euro holds the 1.02 dollars
The euro is trending sideways in Asian currency trading. Currently, 1.0206 dollars are paid for one euro. But a renewed relapse towards parity is not yet off the table. “A new test seems likely, possibly with a slump to the 0.95 mark,” emphasizes market expert Robert Rethfeld from Wellenreiter-Invest. An ounce of gold currently costs $1726.
Focus on VW shares after Diess withdrawal
At the beginning of the new week, the DAX focuses on the VW share. The Wolfsburg car company exchanges its CEO. Herbert Diess will be replaced by Oliver Blume on September 1, who will also remain head of the sports car subsidiary Porsche, VW surprisingly announced after a supervisory board meeting on Friday evening. According to insiders, the impetus for Diess’ separation came from the VW-owning families Porsche and Piech.
T-Mobile US: comparison to data theft worth millions
The American Telekom subsidiary T-Mobile US wants to settle user complaints after a major hacker attack with a payment of half a billion dollars. According to the agreement published over the weekend, $350 million will flow into a fund for US customers who are suing. A further 150 million dollars are to be spent this year and next to improve cyber security.
Supplier Schaeffler buys drive manufacturer
With the Swedish Ewellix Group, Schaeffler wants to buy a drive manufacturer and thus expand its industrial division. The automotive and industrial supplier from Herzogenaurach in Franconia will pay around 582 million euros for the subsidiary belonging to the investment company Triton, as Schaeffler announced yesterday.