Market report
Status: 13.12.2021 07:55 a.m.
The DAX should start the new stock market week with price gains. Investors are betting that the economy will not suffer as much from the spread of the new virus variant Omikron as initially feared.
The DAX is about to start the week promisingly. Banks and brokers currently rate the 40 German standard values 0.4 percent higher at 15,689 points. Investors seem determined to ditch their lethargy and indecision that dominated Friday. This is quite remarkable given the ongoing Omicron uncertainties.
Break the omicron wave with booster vaccinations?
After all, the British Prime Minister Boris Johnson has warned of a “tidal wave” of new infections because of the new Coronavirus variant Omikron. However, worst-case scenarios are no longer assumed in the markets, according to which Omikron will lead to new global lockdowns and the associated dramatic consequences for the economy.
Especially since many countries in the western world have now ignited the booster turbo. According to Federal Health Minister Karl Lauterbach (SPD), the booster vaccination could break the delta wave and avert an omicron wave.
US interest rate turnaround on the march
The US Federal Reserve’s mid-week meeting also seems to have lost much of its horror on the markets. On the stock exchanges, it is expected that the Federal Reserve will announce next Wednesday that it will accelerate its pace in curbing securities purchases (tapering).
The Fed is thus laying the foundation for an earlier turnaround in interest rates. With an inflation rate of 6.8 percent in November, the US has overshot the Fed’s target of 2.0 percent by miles.
Nikkei with price gains
The Fed is not the only central bank to meet this week. The European Central Bank, the Bank of England and the Bank of Japan also announce their interest rate decisions. At the ECB, according to Helaba expert Claudia Windt, it should initially come down to a reduction in bond purchases in 2022.
On the Asian stock markets, investors are confident about the upcoming central bank dates. The Nikkei index, which comprises 225 values, closed 0.7 percent higher at 28,640 points. The Shanghai stock exchange is currently 0.5 percent up.
Dow higher, S&P 500 with new closing record
Wall Street is also providing a tailwind for the Asian and European stock markets. Investors there hadn’t been discouraged on Friday in the face of US inflation as high as it has been for almost 40 years.
The Dow Jones index of defaults went 0.6 percent higher to 35,970 points from trading. The technology-heavy Nasdaq advanced 0.7 percent to 15,630 points. The broad S&P 500 gained 1.0 percent to 4712 points, marking a new record high.
Gold price continues to rise
The gold price can add something to its recent price gains at the beginning of the week. The price of the troy ounce of gold rose 0.1 percent to $ 1,785. The euro fell slightly to $ 1.1297.
Oil prices continue climbing
Oil prices continue to rise in the morning. The price of a barrel (159 liters) of North Sea Brent rose by 1.2 percent to $ 76.08. The price of the US variety WTI climbed 1.5 percent to $ 72.71.
In the past week, the Brent price had risen by over eight percent, the highest since the end of August. Oil investors are betting that the economy will not suffer as much from the spread of the new virus variant Omikron as initially feared.
Daimler pauses production in its Hungarian plant
In view of the global shortage of semiconductors, Mercedes-Benz is suspending production at its plant in Hungary for a month from Monday. Meanwhile, the DAX group has settled further legal proceedings against a monetary payment in the Diesel affair. In Canada, lengthy legal disputes may now be avoided in a settlement by the fact that Daimler pays around 250 million Canadian dollars (175 million euros).
Deutsche Börse relies on eco and crypto trends
Deutsche Börse wants to continue buying in the business of sustainable investments and digital assets. There are great growth opportunities in this area, said Deutsche Börse board member Thomas Book to the “Handelsblatt”. “In both areas we not only want to expand our range organically, but are also looking for purchase opportunities.”
Lufthansa Cargo wants to expand the freighter fleet
In view of the boom in air freight, Lufthansa Cargo wants to enlarge its aircraft fleet. Lufthansa Cargo boss Dorothea von Boxberg explained in an interview with Bloomberg that it concerns both other Boeing 777F wide-body jets and smaller medium-haul cargo jets. It is also considering the new Airbus A350F wide-body freighter, which the manufacturer plans to complete by the middle of the decade.
Tax fraud at Swiss UBS?
The verdict is due to fall today in the newly opened proceedings for alleged tax fraud by the Swiss banking giant UBS in France. As in the first instance, the group is threatened with a fine in the billions. The public prosecutor’s office demanded a fine of at least two billion euros in the newly opened trial before the Paris Court of Appeal, thus requesting confirmation of the previous judgment. The defense demanded acquittal.
Tesla boss Musk tweeted about gigafactory in Shanghai
Tesla boss Elon Musk tweeted that the electric car maker’s production facility in Shanghai could achieve a capacity of 600,000 vehicles a year. In his post, Musk refers to an article from Electrek, an American news website that deals with electric mobility and sustainable energy.