market report
Status: 07/08/2022 07:42 a.m
The leading German index has recovered brilliantly since its low for the year. But at the end of the week of all days, it seems as if the DAX bulls could not pull themselves together for a new tour de force.
The DAX should start the last trading day of the week with little change. The broker IG assesses the 40 German standard values at 12,837 points per hour and is therefore very close to yesterday’s daily closing price. The strong upward momentum of the past few days seems passé.
V-shaped recovery in the DAX
The day before, the DAX had gained 2.0 percent to 12,843 points. Since its low for the year of 12,391 points on Tuesday, the leading German index has gained more than 400 points. A V-shaped recovery is emerging on the chart.
But at the end of the week, many DAX investors are likely to ask themselves how many risks they want to take with them into the weekend. Because the fundamental negative factors that caused a sell-off on the German stock market in June and early July are still in place.
Still numerous risk factors
The gas crisis in Europe and fears of a recession triggered by excessive interest rate hikes by the central banks continue to keep the financial markets in check. From a monetary and geopolitical perspective, there are currently hardly any arguments to buy. In addition, despite the recent price rally in the DAX, the overall downward trend is still intact. The probability of further price losses remains high.
Tailwind from Dow and Nasdaq
Wall Street, however, comes with positive guidelines for DAX trading. The US standard value index Dow Jones closed yesterday 1.1 percent higher at 31,384 points. The tech-heavy Nasdaq advanced 2.3 percent to 11,621 points. The broad S&P 500 gained 1.5 percent to 3902 points.
In the minutes of the most recent meeting for the end of July, which were published on Wednesday, the Fed signaled a further interest rate hike of half a percentage point or three-quarters of a percentage point. This is a relief for investors, as some central bankers had raised the matter by a full percentage point, said stock trader Dennis Dick of brokerage house Bright Trading.
Asian stocks are up
Asian stock indices follow Wall Street’s gains today. The 225-stock Nikkei Index is up 0.7 percent shortly before the Tokyo close. The Shanghai stock exchange is up 0.1 percent.
Euro at a new 20-year low
In Asian currency trading, the euro slipped into the red after initial gains. At the low, 1.0138 dollars are paid for one euro. The European common currency marks a fresh 20-year low. Gold prices are trending sideways at $1742.
Virtual general meeting becomes a permanent solution
Stock corporations may continue to hold their annual general meeting as a purely online event in the future. With this decision early in the morning, the Bundestag made a special regulation from the early days of the corona pandemic a permanent solution and at the same time transferred it to the general assembly of cooperatives.
In contrast to the pandemic provisional, the law that has now been passed also strengthens shareholder rights – for example through the possibility of speaking without prior notice or submitting spontaneous counter-motions.
Speculations about state participation in Uniper
According to a press report, the federal government is considering a higher stake in the financially troubled gas company Uniper. In the discussions about state rescue measures, the federal government is also playing through a participation of more than 30 percent, the “Handelsblatt” reported last night, citing several people familiar with the matter. The background is the importance of the investment grade credit rating for the business of the energy company.
Eurowings increases prices by at least ten percent
The Lufthansa offshoot Eurowings wants to increase ticket prices by at least ten percent due to increased energy costs. That said the chairman of the board, Jens Bischof, of the “Rheinische Post”. The reason given by Bischof was that the higher fuel prices would burden the company with more than 100 million euros. The burden of the oil price shock cannot be shouldered otherwise.
Problem pilot Boeing 737 Max 10 is threatened with extinction
The largest version of the Boeing 737 Max series to date, the 737 Max 10, still has no approval from the US authorities. The deadline for certification expires at the end of the year. Without an agreement with Congress, Boeing could be forced to discontinue the 737 Max 10, CEO Dave Calhoun told Aviation Week.
Twitter stock: Musk deal in serious jeopardy
Shares in the short message service Twitter fell by more than seven percent in after-hours trading yesterday. The trigger was a report by the Washington Post that the ongoing conflict between Elon Musk and Twitter management over the number of spam and fake user accounts on the platform was seriously endangering the $44 billion takeover.