DAX expected to increase: are investors taking a buying opportunity?

market report

Status: 11/17/2022 7:52 a.m

After the price losses of the previous day, investors seem to be switching back to buy mode. weak targets from the USA are not exactly enticing.

The broker IG currently assessed the DAX with plus 0.5 percent to around 14,300 points. Yesterday, the leading German index went down 1.0 percent to 14,234.03 points. Uncertainty arose because the day before a rocket had hit NATO territory in the Polish border area with Ukraine.

Can the DAX continue to rise?

“Investors were reminded of the ongoing risks of war,” comments Konstantin Oldenburger, market analyst at CMC Markets. Even if there was no escalation, this may have been a welcome opportunity for the stock market to take some momentum out of the recent price rally, according to the market observer.

Helaba’s experts currently see signs of an “overbought” market situation in the DAX. After a breather, a further rise should not be ruled out from a technical point of view, they write in their daily comment. At 14,596 points, they see a possible price target, above which the high of June this year at 14,709 is in view.

Weak Christmas forecast weighs on Wall Street

A gloomy forecast for US retailer Target’s important holiday season has slowed Wall Street. In addition, the announcement by the semiconductor manufacturer Micron weighed on the courses to reduce its range of memory chips.

The Dow Jones lost 0.1 percent to 33,553 points. After a recovery rally of around 18.5 percent since the most recent low in mid-October, investors have now become more cautious. The tech-heavy Nasdaq fell 1.5 percent to 11,183 points and the S&P 500 lost 0.8 percent to 3,958 points.

insecurity in Asia

Meanwhile, investors in Asia tried to interpret future Federal Reserve policy. Policymakers had tried throughout the week to rein in markets’ recent optimism that a reversal in central bank rate hikes may be imminent following strong consumer and producer price data. “Fed officials agree that a pause is not imminent,” wrote Ted Nugent, of the National Australia Bank (NAB) in a note to clients. This led to a more cautious tone in the markets.

The Nikkei ended trading down 0.3 percent at 27,931 points. The Shanghai stock exchange was down 0.9 percent. The index of the most important companies in Shanghai and Shenzhen lost 1.3 percent.

Siemens increases dividend

Siemens posted record operating profit in fiscal 2021/22 and increased dividend. Earnings in the industrial business rose by 17 percent to 10.3 billion euros, exceeding the ten billion mark for the first time. Group sales grew on a comparable basis by eight percent to EUR 72.0 billion. Although the net profit collapsed to 4.4 (previous year: 6.7) billion euros as a result of the billions in write-downs on the former subsidiary Siemens Energy at the end of September, the shareholders are to receive a dividend of 4.25 euros per share certificate, which is 25 cents higher.

Thyssenkrupp fears a drop in profits

The industrial group Thyssenkrupp wants to pay a dividend after growth in the past fiscal year 2021/22. Investors are to receive 15 cents per share. Thanks to strong results in the steel division and in the materials trading business, Thyssenkrupp almost tripled its operating result (adjusted EBIT) to 2.1 billion euros in the past fiscal year. The bottom line was a profit of 1.1 billion euros after a loss of 115 million euros in the previous year. When it comes to the outlook, Thyssenkrupp is assuming a difficult fiscal year, among other things because of the steel prices that have meanwhile fallen.

Disney buys cruise ship “Global Dream” from MV shipyards

The American Disney group is buying the cruise ship previously known under the name “Global Dream” from the insolvent MV shipyard group in Wismar, the entertainment giant announced.

Morphosys reduces operating loss

Morphosys’ loss increased to EUR 480.5 (previous year: 133.5) million in the first nine months, mainly due to significantly higher financial expenses as a result of a revaluation of Morphosys’ liabilities as a result of the stronger dollar. Sales climbed 55 percent to EUR 196.7 million, thanks to higher royalties and license income and stronger business with the cancer drug Monjuvi.

Nvidia increases sales

The chip manufacturer Nvidia has increased its sales more than expected. One reason for this was the strong demand for its data center capacity due to increasing cloud usage. Overall, Nvidia posted adjusted sales of $5.93 billion in the past quarter. Data center revenue increased 31 percent year-over-year, while gaming revenue fell 51 percent.

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