market report
Status: 08/11/2022 07:49 a.m
Investors are speculating that inflationary pressures in the USA will fall and that the pace of interest rate hikes will be more moderate. Before the start of trading, the mood is friendly – the DAX should rise.
Before Xetra started, the broker IG rated the DAX a good half a percent higher at 13,780 points. It is thus approaching the high since mid-June at 13,792 points from the previous week. Yesterday, the leading German index went up 1.2 percent to 13,700.93 points.
Investors are now hoping that the US Federal Reserve will take a more moderate stride in its rate hike as inflation falls. In the USA, the inflation rate in July was 8.5 percent year-on-year, below the previous month’s figure of 9.1 percent.
“Particularly against the background of persistently high core inflation rates, however, the US central bankers are likely to raise key interest rates sharply again in September, but possibly to a lesser extent than was last expected,” says Ulrich Stephan, chief investment strategist for private and corporate customers the Deutsche Bank.
Wall Street on the up
The US specifications are correspondingly strong: the Dow Jones rose yesterday by 1.6 percent to 33,309 points. The S&P 500 rose 2.1 percent to 4,210 points. The technology-heavy Nasdaq index, which has recently come under particular pressure, rose by 2.9 percent to 12,855 points. For Nasdaq and S&P it was the biggest daily gain in two weeks, for the Dow Jones even in three weeks.
In the US, slower rises in inflation have also lured investors back into the stock market. There is optimism that June may have been the high point, said Charles Schwab’s vice president of trading and derivatives, Randy Frederick. Unusually large rate hikes by the Fed had recently weighed on the stock exchanges and fueled fears of a recession.
Asia’s stock markets mixed
In Asia, the jubilation continues only to a limited extent. The Japanese Nikkei index was 0.7 percent lower at 27,819 points. The broader Topix index fell 0.2 percent to 1,934 points. The Shanghai stock exchange, on the other hand, was up 0.3 percent. The index of major companies in Shanghai and Shenzhen gained 0.3 percent.
Deutsche Telekom registers more new contract customers
Despite more consumer-friendly termination rights in Germany, Deutsche Telekom won more customers in the second quarter. After deducting terminations, 194,000 new contract customers were added under their own brand, more than in the same quarter of the previous year. Group sales climbed by almost six percent to around 28 billion euros. The bottom line is that adjusted net income after minorities climbed by almost 16 percent to 2.4 billion euros.
Siemens makes a loss
For the first time in almost 12 years, Siemens is in the red – even though business is going well. The Munich group made a loss of 1.5 billion euros in the third quarter. The reasons for this are a high depreciation on the remaining share in the former energy division Siemens Energy and burdens in connection with Russia, since Siemens is withdrawing from there because of the Ukraine war.
Higher steel prices drive Thyssenkrupp
The steel and industrial group Thyssenkrupp continues to benefit from the increased material prices. On the other hand, the group is burdened by the higher interest rates: Thyssenkrupp had to make impairments worth millions in this context, which depressed net profit. In the third quarter, sales rose by a good quarter to almost eleven billion euros. Thyssenkrupp was able to almost triple the adjusted operating result (EBIT) to 721 million euros.
Lots of business for Daimler Truck
The truck and bus manufacturer Daimler Truck did a surprising amount of business in the second quarter thanks to price increases, favorable exchange rates and higher sales. Sales climbed 18 percent year-on-year to EUR 12.1 billion. Group earnings before interest and taxes adjusted for special effects increased by 15 percent to 1.01 billion euros. The Swabians increased the net profit attributable to the shareholders by a good half to 992 million euros.
Credit Suisse major shareholder Harris doubles stake
Credit Suisse major shareholder Harris Associates has almost doubled its stake in the major Swiss bank. According to a report to the US Securities and Exchange Commission, Harris held a 10.1 percent stake at the end of July. The Americans have thus further expanded their position as the largest shareholder. Harris is now well ahead of the other major Credit Suisse shareholders Qatar Investment Authority and Blackrock, each with five percent.
Disney is catching up with Netflix
Entertainment giant Walt Disney has seen rapid growth with its streaming services in the most recent fiscal quarter. The on-demand services Disney+, Hulu and ESPN+ had a combined total of around 221 million subscriptions at the end of June. Disney has thus caught up with the previous streaming market leader Netflix, which recently lost customers and also ended the past quarter with around 221 million user accounts.
Overall, sales grew 26 percent year-on-year to $21.5 billion. Profit increased by 53 percent to 1.4 billion dollars (1.36 billion euros).