market report
Status: 11/24/2022 1:22 p.m
The DAX is trading at its highest level since the beginning of June. Since its low for the year at the end of September, prices have risen by almost 23 percent. And it could go even higher.
Hopes for a more moderate pace from the US Federal Reserve and a mild recession in Germany are giving the DAX a powerful boost. The leading German index continues to expand its price gains in the course of trading and increases by 1.0 percent to 14,567 points. It is thus higher than it has been since the beginning of June and now has further upside potential towards the 14,700 point mark.
Tailwind for the DAX from the Fed and ifo
Markets are buoyed by the Fed minutes from the latest rate meeting earlier in the month, released last night. After that, there were increasing signals in the US Federal Reserve that it would switch to a less aggressive stance on interest rate hikes.
Tailwind for the DAX also comes from domestic economic data. The ifo business climate index, which measures the mood in the German economy, surprisingly tightened in November. “The pessimism with regard to the coming months decreased noticeably,” commented ifo President Clemens Fuest. The recession is likely to be less deep than many had expected.
Just yesterday it had too positive signals from the purchasing manager indices given. This key leading indicator also suggests that the German economy is likely to get away with a mild recession.
Wall Street closed for Thanksgiving
However, today’s strong price gains in the DAX are subject to change. What they are really worth will only become clear tomorrow, or on Monday, when all US investors have returned from the long Thanksgiving weekend. The US stock exchanges will remain completely closed today, and only shortened trading will take place until 7 p.m. CET on Black Friday tomorrow.
Euro just over 1.04 dollars
The euro fails to hold its early gains. At lunchtime, the European common currency turned negative and is now trading 0.2 percent lower at $ 1.0401. An ounce of gold traded 0.2 percent higher at $1,756.
Oil prices continue to fall
Oil prices have continued their previous day’s losses. At midday, a barrel (159 liters) of North Sea Brent costs $84.49. That is 0.4 percent less than the day before. Crude oil prices have been weighed down for some time by the tense corona situation in China.
Real estate shares in demand, Vonovia at the top of the DAX
Among the individual values on the German stock market, real estate values stand out positively at lunchtime. Vonovia, for example, climbed more than four percent in the DAX after losing eleven percent in around two weeks. In an environment of rising interest rates, 2022 has so far been anything but a good year for the industry. Vonovia lost 55 percent of its value by mid-October.
Conti-Hacker was in the IT system much earlier
The automotive supplier and tire manufacturer Continental has them Hacker attack on its IT systems in the summer apparently only noticed after about four weeks. As the financial news agency dpa-AFX learned from corporate circles, the cyber attackers are said to have gained access to data in the Hanover-based company’s network as early as July 4th.
All VW brands suspend advertising on Twitter
The Volkswagen Group has stopped all paid activity on Twitter. All brands in the Volkswagen Group – i.e. VW, Audi, Seat, Cupra, Lamborghini, Bentley, Ducati and Porsche – have frozen their advertising activities on the social media platform until further notice, said a spokesman for the Wolfsburg carmaker yesterday. After Elon Musk took over Twitter, Audi even decided to stop all activities such as direct posts.
Uniper rescue is becoming more and more expensive for the state
The rescue of the tumbling gas giant Uniper will be more expensive for the German state than previously assumed. In addition to the already known rescue plans, authorized capital of up to 25 billion euros is to be created by issuing new shares against cash and/or non-cash contributions, the group announced yesterday. Together with the measures already announced or ongoing, the rescue of the largest German gas importer could cost up to 51.5 billion euros.
Encavis takes over another solar park in Sweden
As part of its partnership with the Norwegian solar park developer Solgrid, Encavis is taking over another solar park in Sweden. The plant in Västervik on the east coast of Sweden will have a generation capacity of around 14 megawatts (MW) and will go online in the third quarter of 2023, the MDAX-listed wind and solar park operator announced today.
Gucci separates from chief designer Michele
Luxury fashion house Gucci has parted ways with creative director Alessandro Michele. The 49-year-old Roman spoke in a statement from the French luxury group Kering, to which Gucci belongs, of “different ideas”. According to industry insiders, Michele and Kering CEO François-Henri Pinault had differing views on Gucci’s creative future.
Apple supplier Foxconn apologizes
The company Foxconn, which produces Apple iPhones, has apologized to workers at its Chinese factory in Zhengzhou after violent clashes. Foxconn announced that a technical error had led to incorrect payslips. “We apologize for an error in the computer system and guarantee that the actual salary will be the same as promised in the official recruitment posters.”
Nestlé plans to invest billions in Saudi Arabia
According to Saudi Arabia, the Swiss food company Nestlé will invest the equivalent of almost 1.9 billion dollars in the kingdom over ten years. A corresponding declaration of intent had been signed. The agreement with Nestlé also includes the construction of a factory and a center for research and development.
Is Microsoft’s acquisition of Activision Blizzard wobbling now?
According to a newspaper report, the US antitrust authority FTC is taking a closer look at Microsoft’s multi-billion takeover of Activision Blizzard. The FTC is considering an antitrust lawsuit to block Microsoft’s $69 billion takeover bid for the Call of Duty video game maker, Politico reported.
Oilfield equipment supplier SBO is feeling the cash register due to high demand
The high demand in the oil and gas industry means that the Austrian oilfield outfitter Schoeller-Bleckmann (SBO) has full order books and higher profits. After taxes, profits increased more than sixfold in the first three quarters to EUR 55.3 million.