DAX decreases Plus: Why the stock market hopes for negative US data

market report

Status: 03.06.2022 12:49 p.m

After a strong start, the price gains in the DAX crumble. Now everything depends on the US jobs report. A disappointing jobs report could help the stock markets regain momentum.

Thanks to good indications from Wall Street, the DAX got off to a promising start. In early trading it went up to 14,590 points. But the leading German index was unable to defend its early gains. In the course of the morning, the plus melted away more and more. At lunchtime, the DAX was up 0.4 percent at around 14,540 points.

Since the London Stock Exchange closed today for Queen Elizabeth II’s jubilee, there is a lack of stronger momentum and turnover. The official US labor market report, which will be on the stock market agenda at 2:30 p.m., should now determine the end of the week. Analysts are expecting an average of 325k non-farm payrolls to be added in May, up from 428k the previous month.

Update economy from 03.06.2022

Stefan Wolff, HR, 6/3/2022 9:48 a.m

Dow futures down ahead of US jobs report

On the positive side, headcount for the stock market would be below expectations, said Rob Carnell, chief economist at ING Bank. “Because at the moment, everything that points to slower interest rate hikes by the Federal Reserve is viewed as supportive.” Analyst Thomas Altmann from QC Partners takes a similar view: “Should the US labor market lose significant momentum, the Fed would certainly have to discuss its rate of interest rates again and critically.”

Fed Deputy Chairwoman Lael Brainard told CNBC yesterday that she saw little reason for a pause in interest rate hikes in September. US futures are trending lower ahead of the important data release. The future on the leading index Dow Jones Industrial Average is losing 0.3 percent at the moment.

DAX initially fails at 14,600 points

At the end of the week, the DAX had to pay tribute to the resistance zone at 14,600 points – as it did on Monday. The key level that would pave the way towards the March high (14,925 points) once again failed to break.

This brings the two most recent daily lows at 14,359/14,330 points into focus again. A slide below that would suggest a failure at the key 14,600 level, HSBC technical analysts stress.

Mixed economic signals from Germany

From a fundamental point of view, mixed economic signals came from Germany in the course of the morning. German machine and plant manufacturers received significantly fewer orders in April than a year earlier. Price-adjusted, the value of new orders fell short of the figures for the same month last year by seven percent, according to the industry association VDMA.

In the morning, German exports had provided a positive element of surprise: German exports had recovered unexpectedly strongly in April from the shock after the outbreak of war in Ukraine. They grew by 4.4 percent on the previous month to 126.4 billion euros due to good business with the USA and the euro countries.

Gold a little cheaper again

The euro is trending sideways at $1.0748 at lunchtime. The price of gold is under some pressure after its recent significant gains. The troy ounce of gold lost 0.3 percent to just under 1865 dollars.

Brent slightly down after OPEC+ decision

On the crude oil market, the price losses for the Brent variety from the North Sea were limited at 0.7 percent to $116.69 per barrel (159 liters), although the OPEC+ export cartel yesterday announced a surprisingly significant increase in production by 648,000 barrels per day .

“Investors see the hike as too small to offset the looming supply squeeze from the EU embargo on Russian supplies and the expected surge in demand from China,” said Stephen Innes, chief executive at asset manager SPI.

Beiersdorf expected back in the DAX

This evening, after the stock exchange closes, the Working Group for Share Indices of Deutsche Börse will decide on the composition of the DAX indices. According to experts, the consumer goods manufacturer Beiersdorf is likely to return to the leading German index just a few months after being dropped from the DAX. The food delivery service Delivery Hero will have to make way for sure.

Fresenius Kabi facing job cuts?

According to the “Handelsblatt”, the medical group Fresenius, which has been busy with an austerity program for a long time, also wants to cut jobs at its infusion manufacturer Kabi. Around 2,000 jobs would be cut there worldwide, around 250 of them in Germany. That corresponds to almost five percent of the jobs in the division. According to the newspaper, Fresenius did not comment on the figures.

Allianz sells majority stake in Russia

Allianz is selling the majority of its business in Russia. The Munich-based insurer announced that the buyer was Interholding, the owner of the Russian property and casualty insurer Zetta Insurance. After completion of the transaction, Allianz will still hold 49.9 percent of the combined company. The sale will result in a burden of around 400 million euros.

Competition gives Adidas and Puma a boost

After encouraging figures from competitors, investors are investing in Adidas and Puma. Earlier, yoga apparel specialist Lululemon announced quarterly earnings above market expectations and raised its full-year targets. At Fast Retailing, the mother of the fashion brand Uniqlo, sales increased by 17.5 percent in May within a year.

Rheinmetall submits offer for Leonardo division

According to insiders and a document, the Düsseldorf-based armaments and automotive supplier group Rheinmetall has submitted a non-binding offer for a minority stake in the Leonardo division OTO Melara. Rheinmetall is aiming for a stake of up to 49 percent in the company. The MDAX group is aiming for a price of 190 to 210 million euros.

New bad news from Singulus

The mechanical engineering company Singulus Technologies has postponed the long overdue publication of the audited annual financial statements for 2020, which was last planned for Friday. Singulus announced yesterday evening that the auditor had requested additional documents at short notice.

Compugroup Medical reorganizes management

The software provider Compugroup Medical is reorganizing its top management. The company announced that the contract with CEO Dirk Wössner would end by mutual agreement on June 30th. The background is “differing views regarding the long-term strategy”. CFO Michael Rauch will be appointed spokesman for the managing directors.

Tesla boss Elon Musk calls for job cuts

Tesla boss Elon Musk wants to cut about every tenth job. In an internal email to executives obtained by the Reuters news agency, Musk writes that he has a “very bad feeling” about economic development. The US electric car manufacturer must therefore reduce its workforce by around ten percent. The e-mail was headlined “Recruitment freeze”.

Apple is improving retail hours

According to an agency report, Apple is responding to efforts to unionize with better working hours. The work schedules would be made more flexible, reported the agency “Bloomberg”, citing insiders. Among other things, the breaks between shifts in some stores would be increased to twelve out of ten hours. The iPhone maker just last week raised the minimum wage for US workers to $22 an hour.

Soon BioNTech and Moderna vaccine for young children in the US?

The US government expects the first vaccinations against the corona virus for children under the age of five from June 21st. The FDA’s external advisory panel will evaluate BioNTech/Pfizer and Moderna vaccines for this age group on June 14-15, said White House coronavirus adviser Ashish Jha. If the FDA agrees, as expected, the vaccines could be shipped right after.

Ryanair boss proposes military at airports because of travel chaos

After several days of long queues at several British airports, the head of Irish low-cost airline Ryanair has suggested letting the military help out temporarily. Deploying the armed forces there, as is done at other airports, would take the pressure off airport security staff in one fell swoop, Michael O’Leary, known for his pithy words, told ITV yesterday.

Stellantis in the pillory

The US Department of Justice has formally charged the US division of automaker Stellantis with a criminal conspiracy to manipulate emissions levels from diesel vehicles. A federal district judge in Detroit has scheduled a court date for today. Stellantis did not comment.

source site