market report
Status: 03/13/2023 07:51 a.m
After the turbulent trading at the end of the week, the DAX should initially stabilize. Investors are puzzling over the consequences of the collapse of the Silicon Valley Bank for the markets.
The broker IG appraised the German leading index DAX before the Xetra trading start moderately in the plus with 15,450 points. On Friday, the DAX ended trading at a discount of 1.3 percent at 15,427.97 points. The collapse of the US start-up financier Silicon Valley Bank had sent the international markets plummeting before the weekend.
The leading German index has been hovering around the 15,400 point mark since the beginning of February. Analyst Martin Utschneider from Bankhaus Donner & Reuschel speaks of “ping pong” of the DAX and a “sideways mode at a high level”. Most recently, higher interest rates on the capital markets had a slowing effect.
How is the Fed reacting to the SVB bankruptcy?
The collapse of the SVB could also have positive consequences for the markets: “With the concerns that have recently emerged about a banking crisis in the USA and the rise in risk aversion, expectations regarding interest rate hikes have been reduced,” write Helaba’s experts in their daily comment.
“Given the stress in the banking system, we no longer expect the FOMC to hike rates at its next meeting on March 22,” Goldman Sachs analysts wrote July and July are left unchanged and now expect a final rate of 5.25 to 5.5 percent, although we see significant uncertainty as to the path.”
Setback on Wall Street
Last Friday, the US stock markets were in turmoil after the SVB collapse. The prices of the big money houses on Wall Street collapsed massively at times, as investors feared latent risks in the balance sheets. The Dow Jones lost 1.1 percent to 31,909 points. The broader S&P 500 fell 1.5 percent to 3,861 points.
The index of the technology exchange Nasdaq fell by 1.8 percent to 11,138 points. On a weekly basis, the Dow was down 4.4 percent, the S&P was down 4.5 percent and the Nasdaq was down 4.7 percent.
Mixed signals from Asia
The events also had an impact in Asia. Statements by the Japanese government and Chinese companies that financial markets and companies are likely to be only slightly affected only partially allayed investors’ concerns about further bankruptcies. The Nikkei lost 1.1 percent to 27,833 points.
The Shanghai stock exchange was up 0.8 percent. The index of the most important companies in Shanghai and Shenzhen gained 0.9 percent after the government in Beijing surprisingly kept the head of the central bank and the finance minister in their posts on Sunday, thus counting on continuity in view of the looming economic challenges at home and abroad .
SAP sells Qualtrics stake to US financial investor
The software group SAP has sold its majority stake in the data analysis company Qualtrics to the financial investor Silver Lake for $7.7 billion. SAP announced that Silver Lake and the Canadian pension fund CPPIB had acquired the 423 million Qualtrics shares held by SAP for $18.15 each. This represents a premium of 73 percent over the average 30-day trading price before SAP announced that it was considering selling its 71 percent stake. Qualtrics has an enterprise value of around $12.5 billion.
Facebook group is considering a decentralized Twitter alternative
The Facebook group Meta is considering a Twitter alternative. “We are considering an independent, decentralized online network for text updates,” said a Meta spokesman on Saturday night, including for the “The Register” website, thereby confirming media reports. It is believed that there are opportunities for a place where, among other things, public figures can “share updates about their interests”.
Boeing can deliver 787 Dreamliner again
The US aircraft manufacturer Boeing can hand over its 787 Dreamliner long-haul jet to customers again. The US Federal Aviation Administration announced that Boeing had dispelled the authority’s concerns. The Airbus rival had to halt deliveries around two weeks ago because additional inspections of a fuselage component became necessary.
Oil company Aramco with record profit
The state-owned oil company Saudi Aramco recorded a sharp jump in profits last year thanks to high oil prices and increased global demand. The surplus rose to $161 billion in 2022 from $110 billion a year earlier, the Saudi industry giant announced on Sunday. This is the group’s largest net profit since the IPO at the end of 2019.