market report
Status: 09/14/2022 07:34 a.m
After yesterday’s severe setback, the DAX will initially not be able to initiate a recovery today. The high inflation and the associated interest rate fears are also weighing on share prices in the middle of the week.
According to pre-market indications, the leading German index should start XETRA trading at 13,090 points in the morning. That would be a further minus of 0.7 percent. Yesterday, the index closed around 1.8 percent in the red.
US inflation fueled
This was due to a precipitous fall in US stock markets after the afternoon reported higher-than-expected inflation for the past month. The inflation rate fell to 8.3 from 8.5 percent year-on-year. However, experts had expected a weakening to 8.1 percent. “The inflation monster strikes again and will not leave us for the time being,” said analyst Salah-Eddine Bouhmidi from brokerage house IG.
Against this background, the majority of stockbrokers still expect the US Federal Reserve to raise interest rates by 0.75 percentage points in the coming week. In the meantime, however, they also consider an increase of a full percentage point to be possible. They see the probability of this happening at 20 percent.
Listing Wall Street
On Wall Street, prices tumbled down until the close of trading. The Dow Jones lost 3.9 percent to 31,105 points. Technology stocks fell even more sharply, with the Nasdaq index slipping 5.2 percent to 11,634 points and the broad S&P 500 slipping 4.3 percent to 3,933 points.
Asian stock markets on the decline
In Asia, too, prices continued to slide in the morning. The Japanese Nikkei index was 2.2 percent lower at 27,992 points. The broader Topix index fell 1.6 percent to close at 1,954 points. The Shanghai stock exchange was down 0.8 percent. The index of the most important companies in Shanghai and Shenzhen lost 1.0 percent.
Euro back below dollar parity
In the FX market, the dollar continued to appreciate against most currencies in anticipation of rising interest rates in the US. The euro has fallen by around two cents from yesterday, falling below par with the US currency again and is currently trading at $0.9990.
Oil is getting cheaper
Oil has become cheaper again on the commodity market, and fears of a recession are leading to expectations of low demand. At $92, a barrel of North Sea Brent in the morning costs just under one percent less than yesterday.
The federal government is leaving Lufthansa completely
On the German stock market, the focus is on Deutsche Lufthansa shares. The federal government has completely sold its stake in Lufthansa. The Economic Stabilization Fund (WSF) sold its last remaining stake of almost ten percent to international investors as part of a block placement, the finance agency announced yesterday evening. At EUR 1.07 billion, the total proceeds significantly exceeded the EUR 306 million used to acquire the stake. The bottom line was a profit of 760 million euros. Lufthansa had already repaid the silent participations in autumn 2021.
Boeing sells more
Airbus competitor Boeing delivered more commercial aircraft in August. According to its own data, Boeing handed over a total of 35 machines to customers on Tuesday, significantly more than the 26 machines in the previous month. While the majority of August was attributable to the problem aircraft 737 Max, the first long-haul aircraft 787 “Dreamliner” went back to a customer for more than a year. At the same time, management recorded 30 orders and four cancellations.
OMV wants to produce in Norway
The Austrian oil, gas and chemical group OMV, along with a number of other energy companies, has applied for new licenses to explore for oil and gas fields in Norway. A total of around 26 companies have asked Norway for permission to drill for oil and gas in this year’s licensing round for predefined areas, according to the Norwegian Ministry of Petroleum and Energy. OMV confirmed to Reuters that they had applied for several blocks. Norway is one of the world’s largest oil and gas exporters. OMV has been active in the country since 2006.
Twitter shareholders vote to sell
The majority of the shareholders of the short message service Twitter voted in the evening for the $ 44 billion takeover bid by Tesla boss Elon Musk. The company announced this after an extraordinary shareholders’ meeting. The courts must now decide whether Twitter will actually be sold: Musk wants to call off the purchase and refers, among other things, to alleged false statements by Twitter about the number of bogus accounts on the platform. A court case in the US state of Delaware will begin in mid-October to decide whether Musk must make the acquisition.
New boss at Cewe
At the photo service provider Cewe, Yvonne Rostock will take over the CEO function and overall responsibility for sales in the Cewe Group by April 1, 2023 at the latest, thus succeeding Christian Friege in these functions, the group said in the evening. According to the information, Rostock has been Managing Director of the Coty Group since the beginning of 2019 and is responsible for the Prestige and Consumer Beauty divisions in the DACH region. Prior to that, she worked for L’Oréal for almost two decades in various management positions both nationally and internationally. In mid-March, it became known that the influential board of trustees would not extend Friege’s contract due to differing views on the management of the company.