Market report
As of: 12/15/2021 8:01 a.m.
The nervousness on the stock exchanges is increasing. Great events cast their shadows ahead. Today the US Federal Reserve will decide on its future monetary policy and thus also on the fate of the markets.
The DAX should start trading at a premium in the middle of the week. Banks and brokers currently rate the 40 German standard values 0.4 percent higher at 15,518 points. However, it is primarily a technical countermovement following the recent price losses.
So far this week has not got off to a particularly good start for the DAX. Yesterday, the leading German index fell by 1.1 percent to 15,454 points. Since its high of the previous week at 15,834 points, the DAX has lost almost 400 points.
Is the Fed stepping on the accelerator when tapering?
The central bank meetings of the Fed, ECB and Co. cast their shadows on the stock exchanges. The first thing on the agenda today is the monetary policy decision of the US Federal Reserve. At 6.8 percent in November, the US is miles above the Federal Reserve’s 2.0 percent target. According to experts, this should put the Fed under pressure to act.
Most market observers are now assuming that the Fed will take the decision today to accelerate the reduction in bond purchases (tapering). A monthly reduction of 30 billion dollars is expected on the market from January onwards.
Dow and Nasdaq with losses
This would end the tapering process in March. The way would be free for interest rate hikes. A total of three key rate hikes are currently expected by the end of 2022. “Investors see the probability of at least one rate hike by the beginning of May at 73 percent,” said analyst Lukman Otunuga from the online broker FXTM.
On the day before the eagerly awaited decision on US monetary policy, investor nervousness also increased on Wall Street; Technology stocks in particular were on investors’ sell lists yesterday. The Dow Jones standard value index closed 0.3 percent lower to 35,544 points. The broad S&P 500 lost 0.7 percent to 4634 points. The technology-heavy Nasdaq was down 1.1 percent to 15,237 points.
Nikkei slightly higher before Fed decision
Asian investors have also turned their gaze to the upcoming decision of the US Federal Reserve today. Finally, the Fed sets the bar for the central banks of the European Union (ECB), Great Britain and Japan, which will also decide on their monetary policy in the course of the week.
The Nikkei index, which comprises 225 values, was 0.1 percent higher at 28,460 points at the close of trading in Tokyo. The Shanghai stock exchange is currently trading 0.1 percent in the red.
Dollar and gold with slight losses
The dollar, which had already shown strength in the days before the Fed’s decision, fell slightly in the morning. The euro is up 0.1 percent to 1.1271 dollars. The troy ounce of gold costs $ 1,770, 0.1 percent less than the day before.
Telekom boss Höttges before contract extension
According to a newspaper report, Timotheus Höttges should lead Deutsche Telekom until at least the end of 2026. At today’s meeting of the supervisory board, the committee will decide to extend the contract for a further five years, reports the “Handelsblatt”, citing three people familiar with the matter.
EU Commission: Veolia is allowed to take over Suez
The European Commission has given the French waste disposal company Veolia the green light to take over its domestic competitor Suez. “Due to the very comprehensive commitments put forward by Veolia, the Commission was able to approve this merger of two historic French players in the water and waste sector,” said Commission Vice-President Margrethe Vestager, responsible for competition.
Federal government wants to save jobs at Alstom
After plans to cut jobs at the railway technology manufacturer Alstom, the federal government has announced that it will work to keep jobs. “We are in contact with both the company and the works council in order to ensure that jobs are preserved here,” said the Parliamentary State Secretary in the Federal Ministry of Economics, Michael Kellner, after a visit to the Alstom plant in Görlitz.
Boeing delivered 34 machines in November
The US aircraft manufacturer Boeing delivered 34 aircraft to its customers in November. 109 orders were compared to 18 cancellations, all for the 737 Max, as the company announced yesterday evening. For the crisis-ridden model, Boeing is approaching 700 orders this year; by the end of November there were 692 machines.
Taxi company withdraws Tesla Model 3 from traffic
The largest Parisian taxi company does not want to use any Tesla Model 3 cars for the time being after a fatal accident. The taxi company G7 said that other models of the electric car manufacturer would continue to drive in the fleet. In the accident on Saturday, a passerby was killed and 20 others injured. There was a suspicion of a technical defect, which the US manufacturer denied.
Google group takes tough action against vaccination opponents
According to a media report, the Google parent company Alphabet threatens employees unwilling to vaccinate if they fail to comply with the vaccination regulations with severe consequences ranging from “compulsory leave” to dismissal. Employees would have to disclose their Covid-19 vaccination status and upload appropriate evidence or apply for a medical or religious exemption, according to a memo from the company management.