market report
Status: 09/30/2022 07:41 a.m
The DAX should start trading below 12,000 points today. The weak guidance from Wall Street and the Nasdaq bring headwind.
As banks and brokers calculate in pre-market trading, the indications on the DAX are around 11,940 points and thus 0.3 percent below the previous day’s level.
“Positive news is still scarce. In the past, a depressive mood was always the breeding ground for an upward trend reversal. But when this time is and whether and how much prices and sentiment will fall before the trend reversal cannot be predicted,” commented Thomas Altman of QC Partners.
And further: “Extremely bad developments on the company side are priced into the prices at the moment. Positive surprises could provide significant relief on the floor,” said the expert with a view to the approaching reporting season for the third quarter now ending.
Price losses on the US stock exchanges
Persistent fears of an economic downturn due to possible further sharp interest rate hikes by the Fed caused many investors to withdraw from the US stock market yesterday.
Robust economic data once again fueled concerns that key interest rates are likely to rise further in the fight against high inflation. The number of weekly initial applications for unemployment benefits fell surprisingly and significantly in the past week.
The Dow Jones index fell 1.5 percent to 29,226 points. The broad S&P 500 lost 2.1 percent to 3640 points. Once again, technology stocks were hit particularly hard. On the Nasdaq technology exchange, the composite index fell 2.8 percent to just under 10,738 points. The technology sector contains many highly rated stocks. The industry reacts correspondingly sensitively to rising interest rates, because future high corporate profits are then worth less at the present time.
“We are moving from a low-yield to a high-yield environment,” said Andrea Cicione, chief investment strategist at research house TS Lombard. Investors assessed the risks for the economy and the catalyst for this was the rate hikes by the Fed and other central banks. The fear of financing problems for countries with high current account deficits is becoming very real.
Nike disappointed
After the US stock market closed, the world’s largest sporting goods company, Nike, presented its latest quarterly report. Business was held back by increased logistics costs and the strong US dollar. At the same time, inventories are skyrocketing and are being reduced with the help of discounts, among other things. In the past quarter, profits fell 22 percent year-on-year to $1.47 billion. Sales increased by four percent to almost 12.7 billion dollars, as the Adidas and Puma competitor announced. Nike shares fell more than 9 percent in after-hours trading.
Euro continued to recover significantly
The euro currently has the upper hand on the foreign exchange market, albeit at a rather low level in historical comparison. The common currency is hovering around the $0.98 mark this morning after trading around three cents lower a few days ago.