market report
Status: 03/28/2023 07:32 a.m
Fears of a escalating banking crisis recede into the background. Further price gains beckon for the DAX. But experts warn that uncertainty and volatility are likely to remain in the markets for a while.
Easing bank worries are likely to bring price gains to the German stock market again. The broker IG currently rates the German standard values 0.4 percent higher at 15,190 points. At the beginning of the week, the DAX had already gained 1.1 percent to 15,128 jobs. A rise above yesterday’s daily high (15,185 points) could now provide a fresh boost.
DAX investors have the 15,300 points in their sights
From a technical perspective, the 15,300 point mark remains in focus. Anything below that is nothing but a countermove within the overall downtrend. On the other hand, a rise above 15,300 points would complete a small bottom formation, which in turn could set the stage for an uptrend.
Fear of credit crunch persists
Even if the markets have calmed down for the time being after the takeover of the collapsed Silicon Valley Bank (SVB) by the US bank First Citizens BancShares, which was announced yesterday morning – the fear of the consequences of a escalating banking crisis is not yet off the table, especially with regard to the USA. After all, it is primarily the small US regional banks that are responsible for lending. If they stumble, a credit crunch threatens with devastating economic consequences.
Fed Board Member Philip Jefferson said the stress in small banks could hit small businesses hardest. On Sunday, Minneapolis Fed President Neel Kashkari warned that problems in the banking industry and the possibility of a credit crunch are increasing the likelihood of a US recession.
Asian stock exchanges hardly moved
“This period of uncertainty that we are experiencing is likely to continue for some time,” said BNP Paribas’ Manishi Raychaudhuri. “We haven’t reached the end of the road yet.” He expects volatility in global markets to continue for at least another quarter or two.
The Asian stock exchanges will provide little impetus for DAX trading in the morning. Shortly before the close of trading in Tokyo, the Nikkei index, which comprises 225 stocks, is hardly changed at 27,436 points. The Shanghai stock exchange is also trending sideways. The index of the most important companies in Shanghai and Shenzhen lost 0.1 percent.
Silicon Valley bank deal props up Wall Street
Meanwhile, slightly positive targets are coming from Wall Street. Yesterday, the SVB takeover there alleviated fears of further bank failures. US investors grabbed bank stocks in particular at the beginning of the week. The Dow Jones index of standard values closed 0.6 percent higher at 32,432 points. The technology-heavy Nasdaq, on the other hand, fell 0.5 percent to 11,768 points. The broad S&P 500 gained 0.2 percent to 3977 points.
Euro continues above $1.08
The dollar is weakening across the board in early forex trading. At the same time, the euro rose 0.1 percent to $1.0813. The upward trend of the European single currency since mid-March is still intact. A troy ounce of gold is $1,958 in the morning.
Zalando shares asked for analyst praise
In the DAX, Zalando shares are in high demand in early trading. The British investment bank HSBC had commented positively on the shares. Everything is going in the right direction at the online retailer, wrote the expert Paul Rossington. The drop in share price and the simultaneous increase in the operating profit target give reason for a reassessment.
Merck is cutting 200 jobs in Darmstadt
At the Darmstadt pharmaceutical and technology group Merck KGaA, the reduction of hundreds of jobs at the headquarters is taking concrete shape. The company is cutting 250 jobs in research and development in the pharmaceuticals division, around 200 of them in Darmstadt. The employees were informed about this on Monday at a works meeting, as the dpa learned from company circles.
Again restrictions for Postbank customers
The penultimate step in the transfer of customer data from Postbank, which belongs to the Deutsche Bank Group, to a shared IT platform is planned for Friday through Monday. During the most recent step around the turn of the year, customers had been complaining about major problems in online banking for days. Deutsche Bank promises Postbank customers better service and faster problem solving in the upcoming third wave of technology conversion.
Warning strikes at VW temporary work agency
Almost 2,000 employees at the VW temporary work agency Autovision called for more money and treatment on an equal footing with the permanent workforce during warning strikes yesterday. According to the IG Metall trade union, the reason for the walkout is dissatisfaction with the company’s previous offer in the current wage round. Within the group, Autovision is responsible, among other things, for looking after and placing temporary workers.
SpaceX rival Isar receives money from Porsche SE again
The German rocket manufacturer Isar Aerospace has received another capital injection from Porsche SE in a financing round. The Volkswagen major shareholder, together with venture capitalists and financial investors, have made a total of 155 million euros available, the company announced yesterday. The SpaceX rival collected a total of 310 million euros.
Rational pays record dividend
The Bavarian commercial kitchen outfitter Rational paid more dividends for the past record year than ever before. The Board of Management and the Supervisory Board are proposing a distribution of EUR 13.50 per share, of which EUR 2.50 is a special dividend. For 2021, the company had paid a total of 10.00 euros. Rational’s sales broke through the billion euro mark in 2022. Net profit soared by 50 percent to 185.7 million euros.
ProSiebenSat.1 apparently succeeds in TV rights coup
ProSiebenSat.1 has pulled off a coup in the competition for interesting sports rights. According to dpa information, the broadcasting group has acquired a comprehensive package for the U21 European Championships from the European Football Union. Subsidiary Seven.One Sports’ contract with UEFA is expected to be officially announced later today.
Auto supplier Norma caps dividend
After the cost pressure of the past year, the head of the Hessian automotive and industrial supplier Norma, Miguel Ángel López Borreg, expects further burdens in 2023 as a result of “geopolitical tensions and challenges on the energy and raw material markets.” Norma had already earned less in 2022 due to increased costs. The shareholders also feel this. The dividend is to be reduced by 20 cents to EUR 0.55 per share.
Musk wants to turn Twitter users into paying customers
Twitter owner Elon Musk is taking the next steps to get users to subscribe. From April 15th, only tweets from paying subscribers will appear in the “For you” area, where software contributions will be selected. After April 15, only paying subscribers will be able to take part in Twitter surveys.
UBS wants to accelerate growth with Credit Suisse purchase
UBS wants to pick up speed with the planned takeover of troubled rival Credit Suisse. “We didn’t look for this transaction, but we were in a good starting position,” said CEO Ralph Hamers in a message to his own employees available to the Reuters news agency. “We see it as an opportunity to accelerate our growth. We didn’t acquire Credit Suisse only to then close it.”
US regulator files lawsuit against Binance
US financial regulators have filed a lawsuit against Binance – the operator of the world’s largest trading platform for digital currencies such as Bitcoin and Ether. The CFTC said the crypto exchange did not follow the rules of the US financial market and operated certain transactions and services without the necessary authorization. Binance specifically tried to circumvent CFTC regulations. The supervisor wants to impose fines and a trading ban.