market report
Status: 02.11.2022 07:48 a.m
Today is a trend-setting day on the stock exchanges: the US Federal Reserve announced its further action in the fight against inflation. The hope of a slower pace should initially allow the DAX to rise.
On the day of the possibly groundbreaking interest rate meeting of the US Federal Reserve, the positive run on the stock market should initially continue and the positive start to the new stock market month last. The broker IG valued the DAX a good half a percent higher in the early morning to 13,413 points.
DAX investors remain courageous
“Investors remain courageous,” writes analyst Thomas Altmann from asset manager QC Partners. Above all, it is positive that even after the rise of the leading German index by more than ten percent since the end of September, hardly any profits have been taken. “The trading day is one of those days that only really begins in the evening,” said Altmann, referring to the Fed’s decision after the stock market closed in Germany.
Investors are eagerly awaiting the central bank’s two-day interest rate meeting that ends today. A fourth hike in US interest rates by 0.75 percentage points is seen by the markets as a foregone conclusion. The central bank’s outlook and the statements by Fed Chairman Powell are therefore likely to be decisive. Investors are hoping for signals as to the pace at which interest rates will continue.
“Many in the market hope and expect that the Fed will slow down from the next interest rate meeting in December. If these hopes are disappointed, there could be new turbulence on the stock exchanges,” says Altmann. The DAX closed yesterday with a premium of 0.6 percent to 13,338 points. However, the stock market barometer was at times significantly higher during the course of the day, with a high of 13,444 points.
Strong jobs data weighs on Wall Street
Eventually, Wall Street’s relative weakness caused some investors to choose to tread cautiously. The Dow Jones closed 0.2 percent lower at 32,653 points. The broader S&P 500 fell 0.4 percent to 3856 points, the Nasdaq 100 was one percent lighter at 11,289 points.
Surprisingly strong US job data pushed prices back into the red after a solid start. Because the Fed also has an eye on the situation on the labor market in its monetary policy. A robust labor market gives the monetary watchdogs more leeway to fight high inflation with strong interest rate hikes.
The number of vacancies climbed to 10.7 million in September, which is also driving up wages in the already hot job market and increasing pressure on the central bank. “The challenge for the Fed remains: It has to clarify how high interest rates have to rise to be sure that inflation is under control and how quickly they have to get to that level,” said analyst Konstantin Oldenburger of the online broker CMC Markets.
Asian stocks with no common direction
Most of the major stock markets in Asia are up today. In Tokyo, the leading Japanese index Nikkei 225 closed slightly lower with a slight discount of 0.1 percent. The Chinese stock exchanges, on the other hand, presented themselves again firmly. The CSI 300 index, which lists the 300 most important Chinese companies on the mainland stock exchanges, rose by 1.5 percent shortly before the end of trading. In the Hong Kong Special Administrative Region, the leading index Hang Seng rose by more than two percent after the rally the previous day. Hopes for an easing of the country’s zero-Covid policy had already boosted the market the previous day.
Euro gains something
The exchange rate of the euro rose slightly before the monetary policy decisions. In the morning, the common currency was trading at $0.9884, slightly higher than the previous evening. The euro was able to recover a bit from the price losses of the previous day. Robust US jobs data had boosted the dollar, while the shared currency suffered in turn.
Teamviewer is growing a little more than expected
After a solid quarter, the software provider Teamviewer has confirmed its 2022 targets. Despite the macroeconomic challenges, the company is on track to meet the annual forecast, said CEO Oliver Steil. In the months of July to September, the invoiced sales (billings) – the central growth factor of the group – increased by 15 percent to 144.6 million euros. The provider of remote maintenance and video conferencing software also benefited from the weak euro, among other things.
AirBnB cautious despite strong fourth quarter numbers
Despite a surprisingly strong jump in revenue and earnings, AirBnB’s fourth-quarter targets fall short of market expectations. Sales will probably be between 1.8 and 1.88 billion dollars, the accommodation agent said last night. The median is below previous analyst forecasts of $1.85 billion. The company warned of a slowdown in demand after more than 100 million room nights were booked on the platform in the past few months – more than ever in a third quarter. The strong dollar also weighed on the balance sheet.