Status: 10/10/2022 07:46 a.m
After weak overseas specifications, the German stock market tends to be somewhat lighter before the market. In the new week, the stock market will focus on the beginning reporting season for the third quarter.
The DAX is struggling with the 12,200 point mark in pre-market business and should therefore start the new week moderately below its Xetra close of last Friday at 12,273 points.
Concerns about rising interest rates and a collapsing economy are likely to continue to have a firm grip on the German stock market. In addition to the interest plans of the central banks, however, another topic is coming into focus – the beginning of the reporting season. It traditionally starts in the USA with the reports from the big banks from the third quarter. According to experts, the suffering German stock market could benefit from this, because they believe that a lot of bad news is now included in the prices.
In terms of turnover, trading could be slower because Columbus Day is being celebrated in the USA today and the bond markets there remain closed.
Maue specifications from overseas
In the morning, the German market is characterized by weak targets from the overseas markets. Wall Street closed much weaker on Friday after a robust job market report, the leading index Dow Jones lost 2.11 percent to 29,296 points. The strength of the job market had fueled fears that the US Federal Reserve would continue to tighten its monetary policy. In addition, the first results of the gas commission to cushion the high energy prices in Germany are expected.
Next Thursday, US inflation data for September could shed some light on the Fed’s future interest rate policy. BayernLB experts expect a slight decline to 8.1 percent. However, the important core rate without energy and food prices could well have risen.
Asia down
At the start of the week, the stock markets in Asia are giving up hope of smaller rate hikes by the central banks after the latest US labor market data. “We are in the midst of the largest and most synchronized tightening of global monetary policy in more than three decades,” said Bruce Kasman of JPMorgan.
Even if the forthcoming consumer price index for September is likely to show a weakening of goods prices, the US Federal Reserve will not react to “a hint of a weakening of inflation” as long as the labor market remains tight.
In China, the markets are down almost one percent, the stock exchange in Australia is losing around 1.4 percent. There is no trading in Tokyo today due to a holiday, the Nikkei index was 0.7 percent lighter on Friday at 27,116 points.
Stable start to the week for the euro
The euro got off to a stable start into the new week on Monday. In the morning, the common currency costs 0.9740 US dollars, about the same as on Friday. The European Central Bank (ECB) had set the reference rate a little higher at $ 0.9797 before the weekend.
The start of the week should be calm in view of economic data. Only the Sentix economic mood is expected, which rarely causes stronger price movements on the financial markets. However, analysts appreciate the indicator because it is published relatively early in the respective reporting month and can provide information on other mood barometers such as the Ifo business climate.
A number of high-ranking speakers from the ranks of the central banks, including Bundesbank President Joachim Nagel and ECB Chief Economist Philip Lane, will speak.
Difficulties in the tech sector
Negative impulses for the stock markets are coming from the technology sector: After the PC and electronics boom in the Corona pandemic, consumers are tightening their belts due to inflation, bringing the golden age of the chip industry to an abrupt end.
The world’s largest manufacturer of memory chips and smartphones, Samsung, had reported an unexpectedly strong decline in its operating profit in the past quarter. At the same time, the US chip manufacturer AMD warned of a significantly weaker sales development.