market report
Status: 01/20/2023 07:38 a.m
The bulls want to regain lost ground and push the DAX back above the 15,000 point mark after yesterday’s slump. But can a conciliatory end of the week succeed?
The DAX should start the last trading day of the week with a premium. The broker IG currently rates the German standard values 0.6 percent higher at 15,010 points. However, this is likely to be primarily a technical counter-reaction to the significant price losses of 1.7 percent previously suffered.
DAX must now make up ground quickly
Yesterday, fears of a recession in the USA and statements by ECB representatives about further interest rate hikes had thoroughly spoiled the appetite for shares of DAX investors. After the long, strong rally at the beginning of the year, which had boosted the leading German index by around nine percent, many experts also saw the time for profit-taking and possibly a small correction.
The DAX is technically a bit battered after yesterday’s price slide. Now it is important to leave the support zone at 14,800/15,000 points quickly and sustainably in order to avert greater damage.
Recession fears weigh on Wall Street
However, mixed specifications for DAX trading come from Wall Street. Recession fears pushed the US stock exchanges back into the red yesterday. The Dow Jones index of standard values closed 0.8 percent lower at 33,044 points. The tech-heavy Nasdaq fell one percent to 10,852 points. The broad S&P 500 lost 0.8 percent to 3898 points.
Asian stock markets defy weak US targets
Asian bourses showed resilience this morning despite the sell-off on Wall Street. The Japanese Nikkei closed 0.6 percent higher at 26,554 points. The Shanghai stock exchange was up 0.7 percent. The index of major companies in Shanghai and Shenzhen gained 0.7 percent.
Euro steady above $1.08
In Asian forex trading, the US dollar remains near its weakest level since May. The euro is trending sideways at $1.0833. A troy ounce of gold currently costs 1,927 dollars, 0.2 percent less than the day before.
Will Rheinmetall replace the outgoing Linde in the DAX?
As part of the delisting of the Linde gases group from the Frankfurt Stock Exchange, the share will be removed from the leading German index DAX on February 27. This was announced by Deutsche Börse yesterday evening. Information on the successor should be communicated on the evening of February 17th. According to index experts, the armaments group Rheinmetall should get the vacant place in the leading German index.
Siemens Energy collects outlook
Siemens Energy has lowered its earnings outlook for 2023 due to unexpectedly high warranty and maintenance costs at its wind power subsidiary Siemens Gamesa Renewable Energy. The DAX group now only expects a profit margin before special items in a range of one percent to three percent. The group had previously assumed two to four percent. In addition, the net loss should now be at the previous year’s level and not fall sharply as previously targeted.
VW is apparently considering cutting works council salaries
According to a report, Volkswagen is having the salaries of a number of works council members checked in response to a ruling by the Federal Court of Justice. Talks about salary cuts were already underway, the news portal Business Insider reported yesterday, citing those affected. Accordingly, VW has set up its own working group for this purpose.
Netflix increases user numbers thanks to “Harry & Meghan”
The success of the documentary “Harry & Meghan” and the series “Wednesday” brought Netflix a surprisingly strong increase in customers. The number of users increased by 7.66 to 231 million in the fourth quarter. Analysts had expected only about half. Netflix shares rose 7% in after-hours trading.