market report
Status: 01/11/2023 07:31 a.m
The break in the stock market rally at the beginning of the year seems to be over. After the DAX made up for initial losses yesterday, the stock exchange light is now green again. Wall Street is helping.
With 14,860 points, the German stock market index should start trading in the middle of the week, according to pre-market indications. This corresponds to an increase of 0.6 percent. Yesterday, the DAX closed slightly in the red, but had already turned positive in late evening trading.
US stock markets on the up again
Tailwind is once again coming from the US stock exchanges. The Dow Jones index of standard values closed yesterday 0.6 percent higher at 33,704 points. The tech-heavy Nasdaq advanced one percent to 10,742 points. The broad S&P 500 gained 0.7 percent to 3919 points.
Fed chief not slowing down market
The markets had hardly reacted to statements made by US Federal Reserve Chairman Jerome Powell at a central banker meeting. “The comments made by Powell, speaking today in Sweden at an event hosted by Sweden’s central bank, failed to further influence the market,” said analyst Konstantin Oldenburger of online broker CMC Markets. The Fed chair has merely reiterated that restoring price stability when inflation is high may require unpopular short-term measures. He did not comment on the forecast for further rate hikes by the Federal Reserve.
Market traders are now hoping for further indications of the Fed’s future rate hikes from the US inflation figures due tomorrow. “It will probably be the most important data point this week and will certainly give us some clarity on the direction of inflation,” said Mona Mahajan, senior investment strategist at financial services firm Edward Jones.
Asia stock markets higher
The stock exchanges in Asia are consistently higher in the morning. The Japanese Nikkei index closed one percent higher at 26,446 points. This is the highest level in two weeks. The main drivers were shares in robot manufacturers. Yaskawa Electric had announced that the situation in the supply chain was improving. The papers increased six percent. The broader Topix index rose 1 percent to close at 1,900 points. The Shanghai stock exchange was up 0.2 percent.
Euro holds above 1.06
On the foreign exchange market, the euro is still able to stay above the 1.06 dollar mark. In the morning, the European single currency is trading at $1.0639. There is also little movement in the commodity market in early trading. A barrel of North Sea Brent costs just under 80 dollars, as it did yesterday. The price for an ounce of gold is 1883 dollars.
Investor pushes Bayer to break up
In the DAX, Bayer shares could be in focus again in the morning. At the pharmaceutical company, the pressure on management is apparently increasing. According to agency reports, the activist investor Bluebell Capital Partners has now also built up a stake in the DAX group. Bluebell is pushing for the company to be split up, according to Bloomberg. He also called for a revision of the principles of corporate governance. In the past, other activist investors such as Elliott Investment Management have called for the company to be split up.
Airbus well ahead of Boeing
The DAX group Airbus remains by far the largest aircraft manufacturer in the world. With 661 aircraft delivered, an increase of eight percent, the Franco-German company fell slightly short of its own target of 700 machines in 2022, as Airbus announced in the evening. However, the group was far ahead of its US rival Boeing, which was only able to deliver 480 aircraft last year.
Billion dollar order for Siemens Energy
Yesterday evening, the energy technology group Siemens Energy received a major order for the connection of wind farms in the German North Sea. Together with the Spanish company Dragados Offshore, the company is to build converter stations with a capacity of up to four gigawatts, as they announced yesterday. The overall order, which also includes maintenance over a period of ten years, has a volume of more than four billion euros. According to industry circles, around half of this will be attributable to Siemens Energy.
Tesla wants to expand battery factory
Tesla is planning a multi-million dollar expansion of its new Gigafactory in Texas. The electric car maker has submitted an application to the responsible authority of the US state, which provides for an investment of almost 776 million dollars in the factory, as can be seen from an application. Five additional systems are planned. This also includes a test laboratory. Tesla is expected to hold its investor day at the plant on March 1 and announce its plans for the expansion.