Market report
As of: 10/26/2021 7:43 a.m.
According to experts, the DAX should start the trading day with a slight premium. The tailwind comes from solid targets from the USA, where the Dow Jones and S&P reached record levels of 500.
The DAX could make it over the hurdle of 15,600 points today. Broker IG valued the German benchmark index around two hours before the Xetra launch, 0.3 percent higher to 15,649 points. Yesterday, the leading German index had risen by almost half a percent to 15,599.23 points. Investors believe the reporting season has been satisfactory so far, but the rise in energy prices is fueling concerns about the strength of the economic recovery.
The balance sheets presented on Wall Street so far have shown “that companies are at least able to cope with rising prices for primary products and raw materials and the ongoing supply bottlenecks,” said analyst Jochen Stanzl from online broker CMC Markets. “Investors are now also hoping for this message from the German reporting season.”
The requirements of Wall Street were strong: The Dow Jones gained 0.2 percent to 35,741 points. The technology-heavy Nasdaq advanced 0.9 percent to 15,227 points, the S&P 500 gained 0.5 percent to 4566 points. The Dow and S&P were again highs.
In the US, it was said that investors continued to view the corporate reporting season with cautious optimism, which is in full swing in the coming days. “The reports have been very promising so far, but whether the markets can continue to take the momentum depends on whether the big tech companies are on board or not,” commented market analyst Craig Erlam of broker Oanda. He was referring to the results expected over the course of the week from corporations such as Alphabet, Microsoft, Apple and Amazon.
Facebook’s numbers were received critically by investors. Third quarter revenues rose 35 percent to around $ 29 billion, but were well below expectations. Facebook’s sales forecast of $ 31.5 billion to $ 34.0 billion for the current quarter was also disappointing. The bottom line was that Facebook earned around $ 9.2 billion, up 17 percent year-on-year.
In Japan, investors reacted with satisfaction to the submission from the USA. The Nikkei index was 1.7 percent higher at 29,097 points. The Topix index rose 1.2 percent and stood at 2019 points. In China, on the other hand, worries about the Chinese real estate sector weighed on. The stock exchange in Shanghai was 0.1 percent in the plus. The index of the most important companies in Shanghai and Shenzen lost 0.1 percent.
Tesla set two records at once: The electric car maker cracked the $ 1 trillion market value and exceeded the $ 1,000 mark for the first time with its share price. This means that the US group is valued almost twice as high on the stock exchange as BMW, Daimler, Volkswagen, Toyota, General Motors (GM), Ford and Stellantis combined.
The closing price was just under $ 1,025, an increase of 12.6 percent. The rally was triggered, among other things, by an order for 100,000 vehicles by the car rental company Hertz. Tesla boss Elon Musk was surprised by the development on Twitter: The problem of his group is actually not the demand, but the ramping up of production.
UBS deserves more
In the third quarter, UBS again benefited from the favorable market conditions and the mostly positive investor sentiment. It not only clearly exceeded the already strong figures from the previous year, but also clearly exceeded the expectations of the market. The bottom line was that the largest Swiss bank earned $ 2.28 billion in the summer quarter. Experts had expected a significantly lower result. In the same quarter of the previous year, as in the previous quarter, the bank had made a profit of just over two billion dollars. Revenues rose year over year by around two percent and reached $ 9.13 billion.
Amazon founder Bezos plans space station
The space company of Amazon founder Jeff Bezos is planning its own station in space. The space station called “Orbital Reef” will be built together with several partners, including Boeing, and will be launched between 2025 and 2030, announced the company Blue Origin. “Orbital Reef” should offer space for up to ten people and also serve as a kind of “commercial area”, as well as a focal point for space tourists.
The largest and most durable space station to date is the International Space Station ISS, operated by the US space agency NASA together with numerous partner agencies from all over the world, which has been permanently inhabited by changing astronauts since 2000. Several private companies have already announced plans for commercial space stations.
Meanwhile, Amazon is keeping an eye on the earth: According to a newspaper report, Great Britain’s espionage authorities have hired Amazon Web Services (AWS) to process confidential material. The aim is to make greater use of data analysis and artificial intelligence (AI) for espionage, wrote the Financial Times (FT). In the agreement with the cloud service unit from Amazon.com, the data of all local authorities in Great Britain will be stored, the newspaper reported, citing people familiar with the conversations.
The British espionage agency GCHQ had advocated a high-security cloud system to be used by sister services MI5 and MI6 as well as other government agencies in joint operations, the report said. As early as February, the bugging service announced that they were using artificial intelligence to uncover patterns in huge amounts of data around the world in order to expose disinformation and child molesters.
The electronics trading holding Ceconomy with its Media Markt and Saturn chains increased sales in the 2020/21 financial year despite the branch closings during the Corona crisis. Adjusted operating income (EBIT) was at the previous year’s level of 236 million euros. Ceconomy is now optimistic about the important Christmas business.
Thanks to a flourishing online business, the Düsseldorf Holding increased revenues by 2.5 percent to 21.4 billion euros, as it announced on Tuesday. Online sales grew by 64.9 percent to 6.9 billion euros.