market report
Status: 15.11.2022 7:38 a.m
The upward movement in the DAX could lose pace after the recent gains. Economic data from the USA will also determine how things will continue today.
Before the Xetra launch, broker IG rated the DAX up 0.12 percent to 14,331 points. Yesterday, the leading German index closed 0.6 percent higher at 14,313.30 points. It has recovered by more than a fifth since the low for the year at the end of September.
US producer prices expected
“On the one hand, the stock market is supported by confidence that inflation has peaked and the Fed is not too far from pausing rate hikes,” said Konstantin Oldenburger, an analyst at online broker CMC Markets. It is also supportive that economic growth has not developed as badly as assumed in the summer.
Investors are awaiting the release of US producer prices for October on Tuesday. It is the prices that manufacturers charge for their products that are seen as an indicator of future price pressure. Market participants will be watching for data to confirm the recently easing inflationary pressures in the US.
Wall Street: Uncertainty over Fed rate pace
Investors on Wall Street started the week down after yesterday’s rally. The Dow Jones closed 0.6 percent lower at 33,536 points. The tech-heavy Nasdaq fell 1.1 percent to 11,196 points. The broad S&P 500 lost 0.9 percent to 3957 points.
However, speculation about less aggressive interest rate hikes by the US Federal Reserve was dampened: Fed banker Christopher Waller warned that market participants should not focus on the pace but on the top interest rate of the current hike cycle. This is still a long way off. In doing so, the currency watchdog trimmed the latest speculation about decreasing interest rate pressure, which had previously driven stock purchases.
upswing in Asia
Despite weak economic data from Japan and China, the markets in Asia are growing. China’s industrial production and retail sales missed analysts’ expectations. Japan’s economy also felt the effects of the global turmoil: Gross domestic product (GDP) collapsed for the first time in a year.
The Nikkei closed 0.1 percent higher at 27,990 points. The Shanghai stock exchange was up one percent. The index of major companies in Shanghai and Shenzhen gained 1.1 percent.
Encavis deserves more
The solar and wind farm operator Encavis continues to benefit from expanded generation capacities and high electricity prices. In the first nine months, sales increased by around 37 percent year-on-year to EUR 354.8 million. Earnings before interest and taxes adjusted for special effects rose by around 45 percent to EUR 166.9 million. The bottom line was an adjusted profit of 86.9 million euros after 57.8 million euros in the previous year.
Data protection: Google pays damages
Google pays nearly $392 million after US investigation into misleading privacy claims Attorneys general for 40 states concluded that Google continued to collect location data from users after they opted out. The prosecutors general criticized the fact that Google had given users the option to refuse the storage of their location data. However, they were not informed that Google apps also automatically collect position data.
FedEx wants to temporarily lay off US employees
The freight division of the US parcel delivery company FedEx wants to temporarily release employees in some US markets. The reason is the current terms and conditions. The DHL rival wants to continue to monitor economic developments and, if business improves, bring the affected employees back. Some employees are to be offered permanent jobs in other areas where staff are needed. The company, like its domestic rival UPS, is also considered a barometer of the US economy, as it transports goods from a wide variety of industries.
Credit Suisse sells securitization business to Apollo
Credit Suisse sold him a large part of its loan securitization business (Securitized Products Group) and associated financing transactions to the US financial investor Apollo Global Management as part of its far-reaching corporate restructuring. After the bank had already announced the transaction at the end of October, it announced today that the definitive transaction agreement had been concluded. The transaction is expected to close by mid-2023. Credit Suisse expects Apollo to take on most of the employees.