Market report
Status: 11/24/2021 7:27 a.m.
Investors can take a deep breath in the morning – the stock market slide has stopped for the time being. On Wall Street the markets stabilized in the evening. Interest concerns, however, continue to weigh on them.
The DAX should start trading today just short of the 16,000 point mark and post an increase of 0.4 percent compared to yesterday’s XETRA close. Some investors apparently already see new entry opportunities in the lower price level.
Tech values under pressure
The US indices closed differently after a volatile trading in the evening: The US standard value index Dow Jones ended trading 0.6 percent higher at 35,813 points. The technology-heavy Nasdaq, however, lost 0.5 percent. The broad S&P 500 gained 0.2 percent to 4690 points.
The dominant theme in New York remains the prospect of a faster tightening of US monetary policy through rate hikes in the coming year. “It is conceivable that interest rates will be raised earlier than expected,” said Rick Meckler, partner at asset manager Cherry Lane. That is positive for banks, but negative for the other industries, especially the technology sector.
Asian exchanges are falling
The impending interest rate turnaround in the US weighed on the Asian stock exchanges in the morning. The Nikkei index, which comprises 225 stocks, closed 1.6 percent lower at 29,302.66 points. The Shanghai stock exchange lost 0.2 percent. The index of the most important companies in Shanghai and Shenzen lost 0.1 percent.
Euro still weak
On the foreign exchange market, the euro is still in a difficult position against the dollar because of the interest rate level that will soon rise, but also the better economic activity in the USA: The common currency is quoted at 1.1240 in the morning, slightly weaker than yesterday. Oil prices are rising slightly, although the USA wants to reduce the supply bottleneck by releasing state reserves. The North Sea Brent is trading at $ 81.50 this morning. Gold is also becoming more expensive again: the price of an ounce of the precious metal is 1795 dollars.
VW buys back Europcar
VW is attracting attention in the DAX. The company can take over the car rental company Europcar. The French Financial Market Authority (AMF) has approved the transaction. The car rental company was in dire straits during the corona pandemic, as were competitors. Volkswagen sold Europcar in 2006. VW wanted to use the planned buyback of Europcar to convert the French company from a pure car rental company to a service network for its own offers, CEO Herbert Diess said at the end of July.
Daimler works council confident before the split
A few days before Daimler was split up into a car and a truck manufacturer, General Works Council Chairman Michael Brecht was confident. “There is a fundamental trust in the decision-makers that this will be a good story in the end,” Brecht told dpa. The truck and bus business from Daimler Truck is to be separated from the group on Wednesday of next week (December 1) and then to be listed on the stock exchange a week and a half later.
PC manufacturers in the boom in demand
The computer companies Dell and HP are making excellent profits thanks to strong demand for PCs. Both companies announced strong leaps in profits in the most recent quarter after the US market closed yesterday evening. Dell and HP continue to benefit from the trend towards home offices and increased IT requirements. Dell increased sales in the three months to the end of October compared to the same period last year by 21 percent to $ 28.4 billion. According to the company, net income more than quadrupled to $ 3.9 billion.
Things went similarly well recently at rival HP. Here sales increased by a good nine percent to $ 16.7 billion in the past fiscal quarter. All in all, HP claims that it earned $ 3.1 billion, around 360 percent more than a year ago. The shares of both companies rose significantly in US after-hours trading.
Major shareholder puts pressure on Deutz
The Dutch financial investor Ardan Livvey wants to withdraw its trust in the Deutz board at an extraordinary general meeting. “We call on the management to deal immediately with the existing problems and to consistently create added value for the benefit of the shareholders,” said Aran Livvey analyst Andre Cabal, according to a press release. Yesterday the investor had disclosed a share of the vote of five percent. The company is developing below average compared to its competitors.
Samsung builds chip factory in the USA
The Korean electronics giant is building another chip factory in the United States for an estimated $ 17 billion. The company chose Taylor in Texas as its location. The factory will thus be located near the first semiconductor plant built by Samsung in Austin in the USA at the end of the 1990s. The start of construction is planned for the first half of 2022 with the aim of having the new system operational in the second half of 2024, announced the world’s largest manufacturer of memory chips, smartphones and televisions on Wednesday.