Market report
As of: 10/29/2021 9:47 a.m.
The quarterly reports from Apple and Amazon are not well received by investors – and now it is here, the dreaded endurance test for the markets. A lot is at stake in the DAX, the profit of an entire week of the stock market is at stake.
The DAX started the last trading day of the week at a strong discount. At the start of electronic XETRA trading, the 40 German standard values are trading 0.7 percent lower at 15,580 points.
The DAX closes the price gap at 15,650 / 15,619 points right at the start of trading and thus also falls below yesterday’s low for the day. That is tantamount to setting a negative course.
Now it remains to be seen whether the striking support zone at 15,600 points can withstand the onslaught of the bears. Otherwise the DAX threatens a slide in the direction of its 38-day line, i.e. the moving average of the past 38 trading days (currently at 15,453 points), as the technical analysts from HSBC Trinkaus & Burkhardt emphasize in a current analysis.
At the end of the week, in addition to the usual brew of inflation and interest rate fears, the negative quarterly balance sheets from Amazon and Apple also put pressure on prices. The two tech giants opened their books yesterday after the US stock market closed.
“Amazon and Apple are the dreaded burden from the reporting season, which has the potential to slow down the market significantly,” commented portfolio manager Thomas Altmann of QC Partners.
“At the end of the week, both the record hunt on Wall Street and the stability of the German share index could be over,” says Jochen Stanzl, chief analyst at CMC Markets. This means that the weekly profit that has been made so far in Frankfurt is up for grabs again today.
Have global delivery bottlenecks Apple severely spoiled business in the past quarter. The situation will worsen again in the Christmas business, company boss Tim Cook told Reuters. This outlook frightened investors, Apple shares lost five percent after the hours of trading.
The Amazon share also sagged after the hours. Delivery problems and a lack of workers are likely to spoil the otherwise lucrative Christmas business for the world’s largest online retailer. At best, Amazon expects an operating profit of three billion dollars, compared to 6.9 billion dollars in the same period last year.
The price losses at Apple and Amazon are likely to have an impact on the US indices today, after all, both companies are extremely heavily weighted not only in the technology-heavy Nasdaq 100, but also in the “market-wide” S&P 500.
In regular Wall Street trading, the major US indices were still able to make profits yesterday. The technology stocks in particular were strong: the Nasdaq 100 marked a fresh all-time high in the course of trading and closed with a premium of 1.4 percent at 15,448 points.
The tech values showed relative strength compared to the Dow Jones index. The US standard values closed 0.7 percent higher at 35,730 points. The broad S&P 500 gained 1 percent to 4596 jobs.
The picture on the Asian stock exchanges was mixed this morning. The Nikkei index, which comprises 225 values, was 0.3 percent higher at 28,893 points at the close of trading in Tokyo. The Hang Seng in Hong Kong is currently 0.8 percent in the red.
“The background noise hasn’t changed in the last few weeks, people are still worried about stagflation, slowing growth numbers and rising inflation, but that’s more priced into the bond market than the stock market right now,” said Kerry Craig , global market strategist at JPMorgan Asset Management.
Meanwhile, positive news not only for the Asian markets comes from the ailing real estate company Evergrande. The Chinese company appears to have made another payment due. As the “New York Times” reports, Evergrande has paid the interest due today and thus once again averted a default.
This is a coupon payment of $ 47.5 million, which was actually due on September 29 for a bond. The grace period would have expired today. Evergrande had just been able to avert a payment default the week before.
In the slipstream of the latest price records for Bitcoin, investors are also stocking up on Ethereum. The second most important cyber currency is now up 3.5 percent to a record high of $ 4404.55. The rate has increased almost sixfold since the beginning of the year. Ethereum even makes Bitcoin look old: The oldest cyber currency only has a plus of a good 100 percent.
The price of the troy ounce of gold fell 0.3 percent in the morning to $ 1,793. The yellow precious metal is moving a little further away from the psychologically significant $ 1,800 mark.
On Friday, the euro surrendered part of its significant gains from the previous day. In the morning, the common currency cost 1.1665 US dollars, a little less than the previous evening. The euro had recently received a boost from comments from the ECB.
Central bank president Christine Lagarde was unable to counter inflation and interest rate expectations on the financial markets yesterday after the interest rate meeting. “The market simply does not believe in the significantly weakening inflation trend that the ECB is forecasting,” said Commerzbank expert Thu Lan Nguyen.
Lots of economic data on the agenda
Today there is some economic data on the stock market agenda, all of which have what it takes to move prices on the currency, bond and stock markets.
At 10 a.m., the German gross domestic product (GDP) for the third quarter will be published. At 11 a.m., consumer prices for the euro zone in October and GDP for the third quarter will follow. At 2:30 p.m. US consumer spending for September is published.
At first, oil prices barely move in early trading. A barrel (159 liters) of North Sea Brent costs 84.46 US dollars. That is 14 cents more than the day before. The price of a barrel of the American West Texas Intermediate (WTI) is stagnating at $ 82.82.
Recently, oil prices have drifted somewhat from their recently marked multi-year highs. The reasons for the price reductions include hopes that negotiations on the Iranian nuclear program will take place soon.
The DAX group Daimler increased its profit in the third quarter despite the slump in sales due to the chip crisis. The net profit attributable to the shareholders rose by 21 percent to 2.47 billion euros. At 40.1 billion euros, sales were on a par with the previous year. “We are staying on course to achieve our goals for the year as a whole,” said CFO Harald Wilhelm.
High demand from the auto industry in China gave the lubricant manufacturer Fuchs Petrolub a boost in the first nine months. The revenues increased by 22 percent to 2.1 billion euros. The bottom line was a profit of 198 million euros, an increase of 39 percent compared to the previous year. The MDAX-listed group confirmed its targets for the year as a whole.
The Facebook group wants to rename and in future called “Meta”. It’s about writing the next chapter, said company founder Mark Zuckerberg. The social media group is under pressure: regulators and politicians worldwide want to curb its market power and put a stop to misinformation and hate speech.
The rising number of new corona infections in China has ruined the Starbucks coffeehouse chain’s balance sheet. Since Starbucks stores in several large cities in China had to close again, sales fell there by seven percent in the past quarter. Overall, however, group sales rose 31 percent to a record high of $ 8.1 billion. The share lost two percent after the hours of trading.