After a rapid price rally: deserved breathing space for the DAX bulls

market report

Status: 01/13/2023 07:42 a.m

The DAX should start the last trading day of the week with little change. The DAX bulls really deserve a break after the furious rally of the previous days.

Another strong week on the German stock market is coming to an end. The DAX is likely to hold its recent gains for the time being. The broker IG rates the leading German index slightly above its yesterday’s closing price of 15,058 points.

Constructive pause in the DAX?

The day before, the DAX had climbed above the 15,000 mark for the first time since February 2022. In the first nine trading days of 2023, it had increased by more than eight percent.

The breathing space that is now emerging is also quite constructive from a technical point of view. As long as the DAX does not fall back into its old trading range below 14,800 points, it will have its chances on the upside.

Wall Street gains after inflation data

After the hoped-for more moderate inflation data, things also continued to rise on Wall Street. The Dow Jones index of standard values ​​went up 0.6 percent to 34,189 points from trading. The tech-heavy Nasdaq advanced 0.6 percent to 11,001 points. The broad S&P 500 gained 0.3 percent to 3983 points.

A tailwind for prices came from the freshly released data on US inflation in December. As expected, this weakened to 6.5 percent. However, the positive surprise hoped for by investors in the form of an even stronger decline did not materialize. The majority of the market is now expecting a small rate hike of 0.25 percentage points at the next meeting of the US Federal Reserve on February 1st.

Banks open US reporting season

In the meantime, investors’ attention is now increasingly being directed towards companies: Today, the banks traditionally open the US reporting season. JPMorgan Chase, Bank of America, Citigroup and Wells Fargo open their books.

Analysts expect falling profits – above all because the institutes are likely to increase their risk provisions out of concern about loan defaults and the weakening economy. Wall Street houses are also struggling with mergers and acquisitions.

Nikkei closes clearly in the red

Mixed specifications for European stock trading are coming from the Asian stock exchanges. The strong yen caused significant price losses on the Tokyo stock exchange. The Nikkei Index, which comprises 225 values, ended the weekend with a minus of 1.2 percent to 26,120 points. On the other hand, things went up slightly on the Chinese stock exchanges. The Shanghai stock exchange was up 0.3 percent. The index of the most important companies in Shanghai and Shenzhen gained 0.4 percent.

Euro continues above $1.08

In Asian foreign exchange trading, there are only signs of a slight countermovement after the dollar’s recent slide. The US currency came under significant pressure yesterday following inflation data for major currencies. The euro jumped over the 1.08 dollar mark and can also defend it in the morning. Currently, 1.0838 dollars are paid for one European common currency.

Ionos IPO next week?

United Internet draws attention to itself on the German stock market. According to circles, the Internet service provider and telecom group is considering starting the IPO of its hosting subsidiary Ionos in the coming week, the Bloomberg news agency reported. UI hopes for an Ionos valuation of up to five billion euros.

Fewer shares for Apple boss after shareholder criticism

Apple CEO Tim Cook is expected to earn significantly less in the current fiscal year. After criticism from shareholders and Cook’s own recommendation, fewer shares will be allocated to him, as Apple announced in documents for the general meeting in March. In addition, their award will depend to a greater extent than before on the course of business. Cook’s base salary of $3 million will remain the same.

Google rivals see opportune moment to attack

New Google challengers see a good time to attack the dominance of the Internet’s leading search engine. The progress in artificial intelligence, which can independently formulate sentences, will soon change how people use software, said the co-founder and head of the search engine Neeva, Sridhar Ramaswamy, at the DLD innovation conference in Munich.

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