market report
Status: 11/18/2022 7:43 a.m
After the long and strong rally of the past few weeks, a small correction in the DAX would not be a big surprise. Only sellers still seem to be in short supply on the German stock market.
Investors continue to look upwards at the end of the week. The DAX should start the last trading day of the week with a premium. The broker IG assesses the 40 German standard values 0.4 percent higher at 14,319 points.
DAX bulls hardly afford any weaknesses
Apart from minor signs of fatigue, such as yesterday’s excursion towards the 14,100 point mark, the DAX bulls are still showing no weaknesses. A correction worthy of the name is not in sight.
The further upward potential of the leading German index should be rather limited in the short term, at least from a technical perspective. After the long and strong rally of the past few weeks, market observers speak of an “overbought” situation in the DAX. But so far every setback, no matter how small, has been bought again.
Interest rate worries weigh on Wall Street
In any case, there is not much support for the DAX bulls from Wall Street. The US stock markets ran out of steam yesterday. The Dow Jones stagnated at 33,546 points. The tech-heavy Nasdaq fell 0.4 percent to 11,145 points and the broad S&P 500 fell 0.3 percent to just under 3,947 points.
Doubts about a pause in interest rate hikes by the Federal Reserve are gradually spreading among US investors. Numerous US central bankers recently emphasized the need to continue raising interest rates, albeit at a slower pace.
For example, St. Louis Fed President James Bullard said that interest rates might need to reach a range of 5% to 7% to be “enough restrictive” to contain inflation.
Nikkei closes slightly in the red
The specifications of Wall Street dampen the buying mood on the Asian stock exchanges The 225-comprehensive Nikkei index has just said goodbye to a minus of 0.1 percent to 27,900 points from trading on the Tokyo stock exchange. The Shanghai stock exchange was up 0.1 percent. The index of major companies in Shanghai and Shenzhen gained 0.3 percent.
Gold and euro in demand in early trading
In Asian forex trading, the dollar is showing some weakness. At the same time, the euro rose by 0.1 percent to $1.0371. The European common currency had been able to make up significant ground against the dollar in the past few weeks.
An ounce of gold costs 0.2 percent more at $1,764. The yellow precious metal was recently able to benefit massively from the falling US interest rate expectations and the weakening dollar.
Expert sees Mercedes-Benz strategy critically
In the DAX, the focus is on the Mercedes-Benz share. According to auto expert Ferdinand Dudenhöffer, the fact that the Stuttgart-based carmaker had to lower prices for some models in China should give the group management reason to rethink. It shows that the focus on high-priced vehicles proclaimed by the Stuttgarters is risky. “One should think again very carefully whether this is a stable strategy for the future.”
Siemens Energy boss moves to Gamesa
The wind turbine manufacturer Siemens Gamesa, which is about to be taken over by the parent company Siemens Energy, is getting a new chairman of the board of directors. Siemens Energy boss Christian Bruch is replacing Miguel Lopez, the Spaniards said. The change is the next logical step in the possible takeover of Gamesa by Siemens Energy and its integration into the parent company.
Amazon also wants to cut 2023 jobs
The boss of the world’s largest online mail order company Amazon, Andy Jassy, has set the employees to further job cuts after the most recent wave of layoffs. The board’s personnel planning will continue into the coming year, which means there will be further job cuts, Jassy explained in a memo to the employees published on the website.
GM raises annual targets – e-cars profitable from 2025
The largest US car company General Motors expects more profits. In the current fiscal year, adjusted operating income should be at least $13.5 billion, according to GM. In addition, the management around CEO Mary Barra gave an optimistic outlook for electric cars. As early as 2025, business in North America with a capacity of one million vehicles per year should be making “solid” profits.
Visa gets a new boss
The credit card provider Visa has named a new CEO. On February 1 of next year, Ryan McInerney will take over as CEO from Alfred Kelly, the Mastercard and American Express rival announced last night after the US stock market closed. McInerney has been responsible for Visa’s global business since 2013 and says the company has 20 years of experience in the financial industry.
More employees are leaving Twitter
At Twitter, the flight of employees after a job ultimatum by the new owner Elon Musk apparently continues. Some employees announced via tweet that they were leaving the online platform. In an email to remaining employees, Musk gave them until 5 p.m. Thursday, US Eastern time, to decide whether they wanted to be part of the “new Twitter”.