Nervousness and volatility mark the final trading days leading up to the U.S. presidential election as attention turns to the 19,000-point threshold in the DAX. Investor enthusiasm wanes, overshadowed by declining interest rate cut hopes and election uncertainties, with the DAX rising slightly to 19,117 points. Wall Street’s negative trend also impacts Asian markets, notably the Nikkei and Shanghai indices. Other highlights include fluctuating gold prices, rising oil costs, and shifts in stock performance for companies like Hellofresh, Apple, and Boeing amidst various economic indicators.
Investor nerves and market fluctuations dominate the final trading days leading up to the U.S. presidential election. As the week concludes, the 19,000-point benchmark is under the spotlight for DAX investors.
On the last trading day of the week, investors are hesitant to make significant commitments. In early trading on the Frankfurt XETRA, the DAX rises by 0.2 percent to reach 19,117 points. “Diminishing hopes for interest rate cuts and uncertainties surrounding the upcoming U.S. election have dampened market sentiment,” say experts from Helaba.
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DAX Bulls Hold Steady at 19,000 Points
“With the U.S. election and the Federal Reserve meeting next week, investor appetite for stocks has suddenly diminished,” notes analyst Konstantin Oldenburger from CMC Markets. The DAX is now grappling with the 19,000 mark, having deviated from its upward momentum toward 20,000.
Yesterday, the DAX briefly dipped to 19,005 points, dangerously close to the round thousand mark. However, similar to early October, the 19,000 level proved resilient against bearish pressure, allowing the DAX to rebound. Technical analysts indicate that there is a critical support zone around the 18,900/19,000 points for Germany’s leading index.
Wall Street Provides Negative Signals
What Will the Fed Do?
As the week ends, the looming U.S. presidential election, coupled with the upcoming U.S. jobs report, is likely to cause unease among investors, as this report is considered a significant indicator for the U.S. Federal Reserve’s monetary policy. The next Fed meeting is scheduled for November 6, one day after the election.
The U.S. government will release its October jobs report today at 1:30 PM our time. Experts surveyed by Reuters anticipate only 115,000 new jobs, down from 254,000 in September.
Nikkei Index Takes a Dive
Against this backdrop, Asian stock markets have also opened November with caution. The Japanese Nikkei index finished trading on the Tokyo Stock Exchange down 2.6 percent at 38,053 points, following the downward trend seen on Wall Street. A stronger yen added further pressure. In Shanghai, the main index recorded a decline of 0.2 percent, while the CSI 300, which tracks major companies in Shanghai and Shenzhen, remained relatively steady.
Gold Prices Fall Short of Record Highs
In early forex trading, the euro is slightly down at 1.0872 dollars. The price of gold per ounce is $2,749, reflecting a 0.1 percent increase over the previous day. Just yesterday, gold reached a new historical high of $2,790 during trading.
Oil Prices Continue to Rise
Oil prices have continued their rally. A barrel (159 liters) of North Sea Brent is currently priced at $74.43, marking a 2.2 percent increase. The oil market is reacting to reports indicating that Iran is preparing a retaliatory strike against Israel from Iraqi territory in the coming days.
Fielmann Faces Pressure After Earnings Report
On the German stock market, the eyewear chain Fielmann has failed to impress investors with its quarterly results, causing stocks to drop significantly at the start of trading. Although Fielmann confirmed its forecast, the company fell short of expectations regarding organic growth in sales due to a challenging economic environment, according to market analysts.
Analyst Actions Impact Hellofresh and Lufthansa
Shares of Hellofresh are experiencing a notable uptick in early trading. The U.S. investment bank JP Morgan has upgraded the stock from ‘Neutral’ to ‘Overweight’ and raised the price target from €7 to €14.
In contrast, Lufthansa shares are suffering from a downgrade. HSBC has reduced its rating for the stock from ‘Buy’ to ‘Hold’ and cut the price target by one euro to €7.
Apple’s Weak Forecast Disappoints Markets
The iPhone manufacturer Apple has disappointed the markets with a weak forecast. CFO Luca Maestri commented on the ongoing struggles in China, expressing caution regarding the holiday season: “We expect total company revenue for the December quarter to grow in the low to mid-single digits compared to the previous year.” Analysts had previously anticipated a growth rate of 6