market report
Status: 04.10.2022 07:37
Anyone who missed yesterday’s trading day on the stock exchange should rub their eyes in amazement: The DAX has made a strong leap up and should continue to rise significantly today.
The DAX is likely to make strong price gains at the start of trading. The broker IG assesses the leading German index 1.5 percent higher at 12,390 points. The German standard stocks should thus seamlessly continue their outstanding performance from the previous day. After initial losses that brought it dangerously close to its low for the year, the DAX turned positive yesterday and was ultimately able to make up 0.8 percent to 12,209 points.
DAX was “oversold”
The “reversal” from the previous day is a good sign from a technical perspective, as is the recapture of the important 12,200 point mark. In the previous week, the DAX had fallen to 11,862 points, its lowest level since November 2020. At an oversold level, many stockbrokers had pointed to a near stabilization.
UK turnaround boosts markets
Tailwind for the markets comes from Great Britain. After heavy criticism, the British finance minister has announced a reversal of the planned tax cut. Kwasi Kwarteng declared on Monday that he did not want to lower the top tax rate of 45 percent for top earners after all.
Investors took this as a signal “that the UK government is at least partially ready to back down from the intentions that have unsettled markets over the past week,” said John Briggs, head of economics and market strategy at NatWest Markets.
Nikkei with strong gains
As a result, the buying mood of investors on the Asian stock exchanges increased significantly. The Nikkei index, which comprises 225 stocks, was 2.4 percent higher at 26,841 points. The stock exchanges in China and Hong Kong remained closed due to a public holiday.
Dow Jones and Nasdaq on course for recovery
Tailwind for the DAX also comes from Wall Street. The US stock exchanges had started the week on a recovery course. The leading index Dow Jones closed 2.7 percent higher on Monday at 29,490 points.
The S&P 500 advanced 2.6 percent to 3,678 points. The tech-heavy Nasdaq improved 2.3 percent to 10,815 jobs. The market barometers thus made up for some of their recent price losses.
Sale at Tesla
Tesla titles slipped nearly nine percent after the electric car maker disappointed with its sales figures. The company referred to delays in the transfer to the customer due to a lack of transport capacity.
Euro continues to recover well
In early forex trading, the euro is trending sideways at $0.9833, allowing it to stabilize further. At the end of September, the European common currency slipped to $0.9538, its lowest level in 20 years.
VW, Porsche and BMW with increased sales in the USA
On the German stock market in the morning, the focus is on car values. The German industry giant VW increased its US sales in the three months to the end of September compared to the same period last year by 12.0 percent to 88,820 new vehicles. The main reason was strong SUV business with the Atlas, Tiguan and Taos models.
Volkswagen’s sports car subsidiary Porsche claims to have increased US sales in the third quarter by 8.5 percent to 16,581 cars. The German luxury car manufacturer BMW also increased its sales in the important US market and delivered 78,031 new cars of its regular brand there; it increased sales by 3.2 percent year-on-year.
RWE remains in a buying mood
The utility RWE wants to continue investing in renewable energies in Germany and Europe, even after a multi-billion dollar takeover in the USA. RWE boss Markus Krebber made it clear that the group does not want to cut back on its spending in Germany and Europe. The energy giant is acquiring US solar system developer and operator Con Edison Clean Energy Businesses for $6.8 billion.
Millions in support approved for BASF
Germany may support the chemical group BASF with 134 million euros. The EU competition authorities have given the green light for the multi-million dollar funding, as the EU Commission announced yesterday in Brussels. The production of renewable hydrogen, for example for transport, is to be supported. So-called green hydrogen is CO2-free because it is produced using electricity from renewable energy sources.
Surprising change of boss at ProSiebenSat.1
There is a surprising change of boss at the ProSiebenSat.1 television group. Former RTL boss Bert Habets will take over as CEO of the Bavarian television group on November 1st. The native Dutchman has been a member of the ProSiebenSat.1 Supervisory Board since May 2022. The previous boss Rainer Beaujean had resigned his office by mutual agreement with the supervisory board, it was said.
Rivian shares asked for numbers
Shares in electric car maker Rivian Automotive are up 9 percent in after-hours trading. The company is sticking to its full-year production target of 25,000 vehicles. In the third quarter, Rivian produced 7363 vehicles and delivered 6584 vehicles. In the previous quarter, the company manufactured 4,401 vehicles and delivered 4,467 to customers.