Market report
Status: 08/12/2021 8:12 a.m.
Freed from their fears of inflation, investors in the USA and in Germany have driven the stock indices to new record highs. That could further strengthen the back of the DAX today.
The leading German index should start trading with slight gains. Banks and brokers currently rate the DAX 0.1 percent higher at 15,839 points. The day before, the German standard values had set a new record at 15,887 meters. At the close of trading they were 0.4 percent higher at 15,826 points.
Records on Wall Street too
Wall Street continues to provide tailwind for the DAX. Both the Dow Jones index of standard stocks and the S&P 500, which tracks the broader market, reached new record highs in the course of trading.
At the close of trading, the Dow Jones was 0.6 percent higher at 35,484 points. The S&P 500 gained 0.2 percent to 4447 points. The index of the technology exchange Nasdaq lost 0.2 percent to 14,765 points.
Temporary high inflation?
The fresh inflation data from the USA provided great relief among investors. Accordingly, goods and services cost 5.4 percent more in July than in the same month last year, but prices rose more slowly than in the previous month.
Many investors see this as confirmation from the US Federal Reserve. The Fed sees rising inflation rates as a temporary phenomenon that does not force it to act immediately.
Fed not under pressure to act
The market had recently had doubts about this reading. But according to the new data, many investors and analysts are now convinced that the price surge in the US has already peaked and that the Fed could thus continue its ultra-loose monetary policy for the time being.
Investors are generally more relaxed about the idea of a slow reduction in bond purchases by the US Federal Reserve than they were two or three months ago, said traders.
Delta worries are depressing Asian stock exchanges
The Asian stock exchanges cannot follow the good guidelines of Wall Street. Investors’ concerns about the rapid spread of the delta variant, especially in Asian countries, are too great.
“The money is only in the US and European markets right now,” said Daniel Lam, senior cross-asset strategist at Standard Chartered Wealth Management. He referred to a strong accounting season in the USA and the high vaccination rates in Europe. This means that the pace of recovery in the USA and Europe would be less affected by the spread of the delta variant, said Lam.
The Nikkei index, which comprises 225 values, is currently 0.1 percent lower at 28,051 points. The Shanghai stock exchange is 0.2 percent in the red.
Quiet Forex and Commodity Trading
The euro is trending sideways at $ 1.1742. The day before, the European common currency had marked its lowest level in four months at $ 1.1705. The troy ounce of gold costs $ 1,751.
Little movement on the oil market either: a barrel (159 liters) of the North Sea Brent costs unchanged at $ 71.44. A barrel of the US WTI variety costs $ 69.24.
Deutsche Telekom increases forecast
In the DAX, Deutsche Telekom moves into focus in the morning. After its subsidiary T-Mobile US, Deutsche Telekom has once again slightly raised its forecast for the current financial year. For the operating result adjusted for leasing revenues for end devices and special effects, the Management Board now expects more than 37.2 billion euros. That is a good 200 million euros more than previously forecast.
Weather diminishes RWE’s business
The energy group RWE benefited from strong energy trading in the first half of the year. The cold of the century in the US state of Texas and below-average wind conditions in Northern and Central Europe, however, led to losses in the business with wind turbines on land. The bottom line was that RWE earned 870 million euros after 816 million euros in the previous year.
Tesla boss Musk is back in Berlin
Musk’s plane landed at Berlin / Brandenburg Airport, reported the Twitter account “Elon Musk’s Jet”. Brandenburg’s Economics Minister Jörg Steinbach later announced on Twitter that he had had a “very relaxed evening meeting” with Musk and Prime Minister Dietmar Woidke. Musk has already visited the production plant under construction in Grünheide several times, held job interviews and stayed there.