market report
Status: 08/26/2022 07:35 a.m
Apparently no one on the stock exchange. Worries about a possible announcement of a tighter US monetary policy at today’s forthcoming speech by the Fed chief at the central bankers’ conference in Jackson Hole are supplanting investors.
The DAX is likely to start the last trading day of the week with gains thanks to good guidance from Wall Street. The broker IG sees the 40 German standard values 0.4 percent higher at 13,327 points. The leading German index should therefore initially continue the recovery movement that started in the middle of the week.
DAX with chart technical relaxation signal
The day before, the DAX had closed 0.4 percent higher at 13,272 points. With yesterday’s jump over Tuesday’s high (13,298 points), the DAX is sending a short-term relaxation signal. This increases the chances of holding the support at 13,000 points.
Dow Jones strong especially in late trading
Tailwind for the DAX comes from Wall Street. US stock markets extended gains in late trading yesterday and closed significantly higher. The Dow Jones index of standard values went up one percent to 33,291 points from trading. The tech-heavy Nasdaq advanced 1.7 percent to 12,639 points. The broad S&P 500 gained 1.4 percent to 4199 points.
All eyes on Jackson Hole
Fed Chair Jerome Powell is scheduled to speak at the Federal Reserve Conference in Jackson Hole today. She will be scrutinized by market participants as to whether an economic slowdown could change the Fed’s strategy and whether a “soft landing” of the economy can be achieved. “There’s a kind of wishful thinking in the market that right now the Fed will come to the rescue when there’s market trouble,” said Todd Lowenstein, strategist at Union Bank.
Huge rate hike ahead?
In fact, the recent rise in US yields should rather caution investors. Especially since the probability of a key interest rate hike of 0.75 percentage points at the September meeting of the US Federal Reserve Bank recently increased again. According to the CME Group’s Fed Watch Tool, 61.5 percent of market participants now expect such a large rate hike.
Mixed picture on Asian stock exchanges
Asian stock markets are teetering between optimism and caution ahead of Powell’s Jackson Hole speech. The Nikkei Index, which comprises 225 stocks, gained 0.7 percent around half an hour before the close of trading in Tokyo. The stock exchange in Shanghai has hardly changed, the index of the most important companies in Shanghai and Shenzhen is slightly in the red.
Euro still below dollar parity
The euro is trending slightly downwards in Asian currency trading and is currently trading at $0.9964, which is further below the dollar parity. Parity is a one-to-one exchange rate between two currencies.
At the beginning of the week, the euro fell to its lowest value in 20 years at $ 0.9899. An ounce of gold is trading at $1755 in early trading.
Mercedes-Benz, BMW and VW in focus
Among the individual values in the DAX, the focus is on the car values at the end of the week. The planned changes to the so-called environmental bonus for electric vehicles are likely to have a particularly negative impact on German premium manufacturers.
According to a response from the federal government to a request from the CSU member of the Bundestag Ulrich Lange, only a fraction of the battery vehicles on offer from BMW, Mercedes-Benz and Audi will be eligible for funding from 2024, as the “Augsburger Allgemeine” reports.
Airbus is “urgently looking for employees”
The aircraft manufacturer Airbus is looking for more than 1,000 new employees for the planned ramp-up of production by mid-2023 alone. After production was drastically reduced during the corona pandemic, it is now set to gradually increase again – up to the record level of 75 machines from the A320 family in 2025.
Lufthansa before new strike
In the wage dispute with its pilots, Lufthansa can go on strike at any time. Lufthansa has submitted a new offer which, from the perspective of the Vereinigung Cockpit (VC) union, is insufficient despite “a step in the right direction”, the VC explained. Preparations for strike action had begun.
SpaceX and T-Mobile US cooperate
Telekom subsidiary T-Mobile will use SpaceX’s Starlink satellites for its cell phones. According to the new plans, cell towers will be redundant and allow texts and images to be sent in places where there is currently no cell phone coverage, said SpaceX and Tesla boss Elon Musk. This is crucial for emergency situations in remote areas.
Dell suffers from strong dollar
The US computer group Dell has reported the lowest sales growth in six quarters due to the strong dollar and renewed corona outbreaks in the important customer country China. Revenue for the fiscal quarter ended July 29 increased 9 percent from the prior-year period to $26.4 billion. Net income from continuing operations fell to $506 million from $629 million.