market report
Status: 02/15/2023 07:48 a.m
After yesterday’s rapid ups and downs, the DAX investors have to collect themselves again and reassess their opportunities and risks. Because the US Federal Reserve is unlikely to like the latest inflation data.
After yesterday’s turbulent trading day, things seem to have calmed down on the German stock market. The DAX is not expected to change much. The broker IG assesses the German standard values at the hour in the vicinity of their previous day’s closing price.
The day before, after the US inflation data for January was published, the DAX had fluctuated between gains and losses and ultimately ended trading with a small minus of 0.1 percent to 15,381 points.
DAX bulls clear way towards annual high
The DAX had previously closed the downward price gap from Friday (15,488 to 15,520 points) and thus cleared the last remaining resistance on the way to the high for the year (15,659 points).
From a technical point of view, the way up is now clear, but from a fundamental perspective there are definitely reasons that speak against a further rise in the DAX.
US inflation: “Fed cannot be satisfied”
In January, the inflation rate in the US fell, albeit only slightly, to 6.4 percent from 6.5 percent in the previous month. “The US central bank can therefore not be satisfied. We expect further rate hikes,” explained Commerzbank economists Christoph Balz and Bernd Weidensteiner.
Due to the rather stubborn price increases in services, inflation should ease off only slowly over the course of the year and ultimately remain higher than the Fed’s target.
Overall, the US inflation data had confirmed the restrictive monetary policy course of the US Federal Reserve, it was also said by Credit Suisse. The experts only expect a break after two further small increases in key interest rates by May.
Mixed guidance from Dow and Nasdaq
Meanwhile, Wall Street is giving mixed specifications for DAX trading. The US stock exchanges failed to find a common direction yesterday after the surprisingly moderate drop in the inflation rate.
The Dow Jones index of standard values closed 0.5 percent lower at 34,089 points. The tech-heavy Nasdaq, on the other hand, advanced 0.6 percent to 11,960 points. The broad S&P 500 ended trading little changed at 4136 points.
US inflation data unsettles Asian investors
The losers dominate the Asian stock exchanges in the morning. Investors preferred to take cover after the US inflation data. The Nikkei index, which comprises 225 stocks, was 0.4 percent lower at 27,502 points at the close in Tokyo. The Shanghai stock exchange was down 0.4 percent. The index of the most important companies in Shanghai and Shenzhen lost 0.4 percent.
Gold suffers from rising interest rate expectations
The troy ounce of gold lost another 0.5 percent to 1845 dollars. The yellow precious metal is suffering from the US interest rate expectations, which have risen again, as it does not yield any interest or dividends itself. That makes gold rather unattractive in such an environment. Gold has already lost over $100 since the beginning of the month.
The euro slipped into the red in Asian forex trading after initial gains. The European common currency is currently trading at 1.0714 dollars, 0.2 percent lower.
Historic order for Airbus
In the DAX, the focus is on the Airbus share. Air India has ordered a total of 470 aircraft from Airbus and Boeing and intends to lease a further 25 aircraft. Overall, this is the largest aircraft purchase in aviation history. The world’s largest aircraft manufacturer Airbus from Europe was able to secure the largest part of the order with 250 machines.
United Internet wants to buy back its own shares
The Internet service provider United Internet wants to buy back its own shares for around 300 million euros. For this purpose, up to 13.9 million shares are to be purchased at a price of EUR 21 each, as the TecDAX-listed company announced in the evening. The United Internet share closed yesterday at EUR 19.66.
Encavis benefits from high electricity prices
Thanks to high electricity prices, the solar and wind farm operator Encavis has positively surprised analysts and itself with developments in the past year. The company, which is listed in the MDAX, announced during the night that all important key figures had exceeded their own forecast. Operating sales increased by a little more than a third to 455 million euros.
AirBnB surprises markets with quarterly forecast
AirBnB has positively surprised the markets with its revenue guidance for the current quarter. The US room broker expects revenues of between $1.75 billion and $1.82 billion given stable demand for travel. Analysts had previously assumed $1.69 billion. The reason for the optimistic outlook is, among other things, the lifting of the pandemic-related travel restrictions in numerous countries.