market report
Status: 04/13/2022 07:22 a.m
In the middle of the week, the stock markets remain under pressure from many sides. The war in Ukraine is a burden, as is the prospect of rapidly rising interest rates. The DAX should open in the red.
Around 0.4 percent weaker, at 14,070 points, the leading index is expected to start trading this morning, according to pre-market indications. The mixed situation remains difficult for share buyers.
Wall Street turns negative
In the USA, the indices turned negative again after an initial recovery movement. A wave of sell-offs set in in late trading due to fears of soaring interest rates. The US Federal Reserve recently signaled that it wanted to raise interest rates aggressively in order to bring rising inflation under control. The Dow Jones index of standard values closed 0.3 percent lower at 34,220 points. The tech-heavy Nasdaq fell 0.3 percent to 13,371 points. The broad S&P 500 also lost 0.3 percent to 4397 points.
US Federal Reserve under pressure to act
US consumer prices rose by 8.5 percent in March to their highest level since the end of 1981. In the run-up to the data, speculation of even higher levels and more drastic interest rate hikes by the US Federal Reserve had arisen. The experts on the markets are currently assuming that there will be a rate hike of 50 basis points at the US Federal Reserve meeting next month.
Asian stock exchanges inconsistent
The stock market in Tokyo tends to be firmer in the morning. The 225 Nikkei index is currently 1.6 percent higher at 26,757 points. The broader Topix index is up one percent to close at 1882 points. The Shanghai stock exchange, on the other hand, is down 0.4 percent. The index of the most important companies in Shanghai and Shenzhen lost 0.4 percent.
Euro continues to weaken
On the foreign exchange market, the European common currency is still on a downward trend. In the morning, the euro is trading at $1.0833. In this way, the players are also reacting to the interest rate differential between the USA and the euro zone, which is likely to increase further in the near future.
Easing in China supports the oil price
The price of North Sea Brent crude oil is unchanged at around $104. Market participants attribute yesterday’s price increase to the latest developments in China. After the strict corona lockdown in the economic and financial metropolis of Shanghai, some people were allowed to leave their homes for the first time in more than two weeks. The relief at the first easing of the strict restrictions also eased concerns about demand on the commodities market. Stock market traders still expect further fluctuations: “The oil market is still vulnerable to a major shock if Russian energy is sanctioned, and this risk remains on the table,” said Edward Moya, market analyst at brokerage house Oanda.
Fraport with more passengers and less freight
Among the German stocks, the airport operator Fraport should be in focus in the morning. In March, the company carried 2.94 million passengers at its most important location in Frankfurt. That was 217 percent more than a year earlier, but still 47 percent less than before the corona pandemic in March 2019. In the freight sector, business fell by 13.3 percent to 177 million tons compared to the previous year.
Boeing fears for orders
The US aviation group Boeing fears that it will lose orders for more than a hundred aircraft because of the Russian war against Ukraine. According to its own statements on Tuesday, the company canceled 141 ordered jets from its order book in the first quarter. According to a spokesman, the main reason was the conflict in Ukraine. The Western sanctions imposed on Russia as a result now make orders from customers in the region uncertain. According to the spokesman, the adjustments do not mean that the orders have already been lost. However, Boeing is obliged to take geopolitical risks into account in its order book.
Shop pharmacy buys too
The online provider Shop Apotheke is expanding its business with the purchase of a fast delivery service. The company acquired quick commerce pioneer First A. The Berlin start-up offers the delivery of medicines within 30 minutes in five major German cities. Partnerships with local pharmacies should contribute to this. The purchase price consists of an amount due upon completion and success components over the next four years, which are expected to total an amount in the double-digit millions. So-called quick commerce is seen as a growth engine among online delivery services.
Nordex suffers from a cyber attack
The wind turbine manufacturer has been further impacted after a cyber attack in late March. “To protect our customers’ assets, remote monitoring access from the company’s IT structure to the turbines under contract has been disabled as a precautionary measure,” the company said last night. According to the information, the turbines themselves continue to run without restrictions, and communication with network operators and energy traders is not affected either. It was also said that alternative monitoring services had now been set up for most of the systems. After the attack was noticed by Nordex on March 31, the group reportedly switched off various IT systems in different business areas as a precaution.