market report
Status: 08/31/2022 07:30 a.m
Despite negative indications from the Asian stock exchanges and poor economic data from China, DAX investors were ready to buy early in the morning. The DAX is targeting the 13,000 point mark.
Thanks to rising US futures, investors on the German stock market could expect a friendly start to trading. The broker IG sees the DAX 0.5 percent higher at 13,024 points. The German standard stocks should therefore initially build on their yesterday’s price gains. Negative impulses from Asia will be ignored for the time being.
DAX remains technically ailing
However, a look at yesterday’s trading urges caution: On Tuesday, the DAX was unable to defend its initially strong gains. In the end, there was only a manageable plus of 0.5 percent to 12,961 points, after it had risen to 13,154 points during the course of the day.
The DAX is also sending a negative signal in terms of charts. In any case, experts are pointing out that anything below the 13,200 point mark is just an upward correction within the overall downtrend.
China’s industry is shrinking again
Negative impulses for the stock exchanges are also coming from China. Industrial production there shrank for the second month in a row as a result of the tightened corona measures, the real estate crisis and electricity rationing in August.
Currently, 28 Chinese cities, which alone account for 15.7 percent of gross domestic product (GDP), are in lockdown or under strict virus measures – slowing demand and economic activity.
Asian stock markets plummet
The negative China data and the ongoing concerns about an aggressive tightening of US monetary policy are causing investors on the Asian stock exchanges to shy away from buying shares. The Nikkei index, which comprises 225 values, was 0.4 percent lower at 28,081 points. The Shanghai stock exchange was down 0.6 percent. The index of the most important companies in Shanghai and Shenzhen lost 0.2 percent.
Dow Jones and Nasdaq with losses
Negative guidelines for DAX trading also come from Wall Street. The US standard value index Dow Jones closed yesterday one percent lower at 31,790 points. The tech-heavy Nasdaq fell 1.1 percent to 11,883 points. The broad S&P 500 lost 1.1 percent to 3986 points.
Many investors worried about aggressive US rate hikes. They saw their fears confirmed by the latest JOLTS job vacancy report. This pointed to an extremely tight US labor market situation, which should provide the US Federal Reserve with further arguments for tightening its monetary policy. Investors were also made nervous by the surprisingly significant increase in the index for the consumer mood of US consumers.
Euro continues above dollar parity
The European common currency continues to hold above dollar parity in early forex trading. One euro pays 1.0039 dollars. Parity is a one-to-one exchange rate between two currencies. At the beginning of the week, the euro fell to its lowest value in 20 years at $ 0.9899. An ounce of gold costs $1725.
BMW starts production of fuel cell drive
On the German stock market, the focus is on the BMW share. CEO Oliver Zipse wants to start production of the fuel cell system for the BMW iX5 Hydrogen together with the Bavarian Prime Minister Markus Söder today in Garching. The car manufacturer wants to gain experience with the small series and thus keep the option open of selling such cars in larger numbers in Asia soon.
VW subsidiary Skoda presents new brand identity
The Czech Volkswagen subsidiary Skoda is changing its logo and brand image. Instead of the winged arrow, the Skoda logo will be emblazoned on the front of the vehicle. The tick above the S, which marks the pronunciation as a Sch sound in Czech, is only hinted at. The reason given was that the diacritic was confusing for customers in global markets.
Musk voids Twitter deal
Elon Musk comes up with new arguments when trying to call off his $ 44 billion takeover of the online service Twitter. In doing so, the Tesla boss brings into play the recently made allegations by a whistleblower who, among other things, accuses Twitter of insufficient protection of user data and other security weaknesses. Because of these “outrageous” flaws, Musk’s purchase offer for Twitter is to be classified as invalid, his lawyers wrote in a letter to the company published yesterday in a stock exchange release.
Snapchat operator Snap wants to cut 20 percent of the jobs
According to a media report, Snap plans to cut about a fifth of all jobs. The project has been in progress for several weeks, “The Verge” reported yesterday, citing people familiar with the process. The layoffs were supposed to start today. A Snap spokesman declined to comment. According to the report, the company employs more than 6,400 people.