market report
Status: 02/10/2023 07:43 a.m
After yesterday’s lavish stock market party, the German stock market has become sober. The DAX should start the last trading day of the week at a significant discount.
Apparently the air is out on the German stock market for the time being. After the DAX had marked a new high for the year at 15,659 points yesterday, the leading German index is facing significant losses in the morning. Negative guidance from Wall Street weighs on investors’ buying mood. The broker IG assesses the German standard values 0.7 percent lower at 15,408 points.
Profit-taking instead of connection profits in the DAX
Many investors currently tend to answer the question of subsequent profits or profit-taking in the DAX with profit-taking. The approaching weekend should also play a role here; it is important to reduce the risk over the trading-free days.
The recent upward price gap (15,372 to 15,363 points) now deserves special attention. Should it be closed, the technical picture would cloud over somewhat in the short term.
Negative guidance from Dow and Nasdaq
In the evening, investors on Wall Street were again worried about a possible further rate hike by the Federal Reserve Bank and the impact on the US economy. In addition, there were significant price reductions in the Alphabet share, which is heavily weighted in many indices.
The Dow Jones index of standard values fell 0.7 percent lower to 33,699 points from trading. The technology-heavy Nasdaq fell one percent to 11,789 points. The broad S&P 500 lost 0.9 percent to 4081 points.
Traders also justified the price reductions with rising yields on the bond market. Demand remained weak at an auction of 30-year bonds.
Alphabat stock plummets after AI glitch
In terms of individual values, shares in Google parent Alphabet fell by 4.4 percent. The background is that the Google AI “Bard” made a mistake in an advertising video. The battle of artificial intelligence is mainly fought between Microsoft and Google.
Nikkei with slight gains
Asia-Pacific stock markets were mostly down in the morning, suffering their second weekly loss. The Shanghai stock exchange was down 0.6 percent. The index of the most important companies in Shanghai and Shenzhen lost 0.7 percent. The Nikkei Index, which comprises 225 stocks, stood out positively with an increase of 0.3 percent to 27,671 points.
Gold prices 4.5 percent below February high
In Asian forex trading, the US dollar is showing some strength. At the same time, the euro fell by 0.1 percent to $1.0728. An ounce of gold is currently $1,871, down 0.1 percent from the previous day. Since its high at the beginning of the month at just under 1960 dollars, the yellow precious metal has already lost 4.5 percent.
Oil prices ease slightly
Oil prices fell slightly in early trading. In the morning, a barrel (159 liters) of North Sea Brent for delivery in April cost 84.06 US dollars. That was 44 cents less than the day before. The price of a barrel of the American West Texas Intermediate (WTI) variety for March delivery fell by 47 cents to $77.59.
A slight burden came from the dollar, which appreciated slightly against other currencies and thus made crude oil, which is traded in dollars, more expensive due to the exchange rate. That weighed on demand outside the dollar area.
Rapper partnership is expensive for Adidas
In the DAX, the focus is on the Adidas share. The termination of the partnership with the controversial rapper Kanye West will also burden the group in the current year. The company anticipates a significant negative impact if it fails to sell. This would reduce sales by around 1.2 billion euros in 2023 and the operating result by around 500 million euros.
L’Oréal increases sales and profits strongly
Strong demand for make-up and skin care products and the weak euro have weighed on the French cosmetics group L’Oréal, with brands such as Maybelline New York and Garnier, a strong increase in sales and profits. Sales climbed by almost a fifth to just over 38 billion euros. Profit increased by 24 percent to 5.7 billion euros.
PayPal on course for strong growth
The online payment service PayPal grew significantly at the end of the year despite fears of inflation and recession. In the fourth quarter, revenue rose seven percent year-on-year to $7.4 billion. Net income increased 15 percent to $921 million. At the same time, PayPal announced the resignation of CEO Dan Schulman at the end of the year.
Trump’s Facebook account reactivated
The profiles of former US President Donald Trump on the Internet platforms Facebook and Instagram of the US group Meta have been activated again after around two years. As of Thursday evening (local time), the Republican had not yet posted a new post on his profiles in the two networks.
Credit Suisse is closely monitored by Swiss regulators
The Swiss financial market supervisory authority Finma described the cash outflows of CHF 110.5 billion net at Credit Suisse in the fourth quarter of 2022 as “significant”. “It is clear that Finma monitors the banks very closely in such situations.” Finma welcomes the measures announced by CS in October 2022 to reduce the bank’s risks and strengthen its capital.