market report
Status: 03/14/2023 07:37 a.m
After its recent slide, the DAX is trying to stabilize in the morning. But a possible attempt at recovery is on shaky ground. The risk of further bank failures has not yet been averted.
Investors are still worried about further bank failures, but there is a chance of stabilization, at least in the short term. The broker IG assesses the DAX for the hour close to its previous day’s closing price of 14,959 points. A gentle tailwind comes from the rising US futures on the Dow, S&P 500 and Nasdaq 100, all of which are currently up around 0.1 percent.
DAX turnaround on Turnaround Tuesday?
The day before, the collapse of the Silicon Valley Bank (SVB) had sent shock waves through the markets, and the DAX closed 3.0 percent in the red. After all, the leading German index was able to find support in the important catchment zone between 14,800 and 15,000 points. A technical counter-movement after the recent price losses would therefore not be surprising. Especially since today is Tuesday, the day with the statistically best signs for a positive turnaround on the stock market (“Turnaround Tuesday”).
Dow closes down, Nasdaq with gains
Meanwhile, regular trading on Wall Street is giving inconsistent specifications for the start of the DAX. The Dow Jones index of standard values fell 0.3 percent lower to 31,819 points from trading. The broad S&P 500 lost 0.2 percent to 3855 points. The tech-heavy Nasdaq, on the other hand, advanced 0.5 percent to 11,188 points.
In contrast, bank stocks on both sides of the Atlantic tumbled after three US banks collapsed in five days. The major US banks JPMorgan, Wells Fargo, Goldman Sachs, Morgan Stanley, Citigroup and Bank of America lost between 1.8 and 7.4 percent.
Interest rate hopes germinate
Now that the cycle of interest rate hikes has claimed its first major victims, hope is also spreading among investors. Hope the Fed may take its foot off the rate pedal given recent events. Traders currently see a 50% chance of no rate hike in the upcoming session. The market is also pricing in interest rate cuts by the US Federal Reserve at the end of the year for the first time in weeks, and yields on the bond markets are plummeting.
“There’s a saying on Wall Street that the Fed will keep raising interest rates until something important breaks,” said Jochen Stanzl, chief analyst at CMC Markets. “Amazingly, nothing broke for a year. Now the point could be reached.”
Asian stock markets deep in the red
However, there is not much sign of calm and hope on the Asian stock exchanges in the morning. The Nikkei index, which comprises 225 stocks, was 2.2 percent lower at 27,222 points at the close in Tokyo. The Shanghai stock exchange was down 0.9 percent. The index of the most important companies in Shanghai and Shenzhen lost 0.8 percent.
Euro continues above $1.07
The speculation that the Fed will pause interest rates is meanwhile clearly reflected on the foreign exchange market: the dollar had been under noticeable pressure in the past few days, while the euro had made up a lot of ground. In the morning, the European common currency is slightly lower at $ 1.0705. An ounce of gold costs 0.4 percent less at 1,904 dollars per hour.
All eyes on Deutsche Bank and Commerzbank
On the German stock market, bank stocks are likely to be the focus of investors once again. Yesterday, especially papers from Commerzbank got under the wheels in Frankfurt, which lost almost 13 percent. Deutsche Bank shares lost 4.9 percent.
Auto shares: Discussion about combustion engines
Beyond the banks, shares in the German car companies could also be worth a look. Federal Transport Minister Volker Wissing expects rapid progress in the dispute over a planned ban on new cars with combustion engines from 2035. Germany has forged an alliance with Italy and a number of Eastern European countries against the planned end of combustion engines from 2035.