Market report
Status: 11/12/2021 7:46 a.m.
At the end of the week, investors’ concerns about inflation fade into the background. The DAX has a good chance of attacking its record, which is only a day old.
The DAX should start the last trading day of the week with a small premium. Banks and brokers currently rate the 40 German standard values 0.2 percent higher at 16,108 points. In the course of the night it had even gone up to 16,129 meters at times.
It remains to be seen whether the DAX can rise to a new record high beyond the record set on Thursday of 16,115 points during regular XETRA trading from 9 a.m.
This would put the icing on the cake for a week during which the DAX has already made two new record highs. The bottom line is that the week has so far been quite lively, with the leading German index fluctuating by less than 100 points so far.
Particularly noteworthy: the DAX recently showed relative strength compared to the US stock exchanges, which had come under pressure over the course of the week in view of burgeoning inflation worries and interest rate fears.
Last but not least, the weak euro is likely to have been a major support for the German standard values. The European common currency continues to fall in the morning, falling to $ 1.1436. This makes it cheaper than it has been since mid-2020.
The background to this is the rising interest rate expectations in the USA, which are strengthening the back of the dollar. The weak euro, on the other hand, is good news for the German export industry, which is heavily weighted in the DAX, as it makes German products cheaper in countries outside the euro zone and thus boosts demand.
Yesterday, the major US indices failed to find a common direction. The Dow Jones index of standard values closed 0.4 percent lower to 35,921 points. The leading index suffered from a slide in the price of Walt Disney shares of around seven percent – the entertainment giant had presented disappointing business figures.
The technology-heavy Nasdaq 100, on the other hand, benefited from easing inflation worries and advanced 0.5 percent to 15,704 points. The broad S&P 500 gained a moderate 0.1 percent to 4649 points.
On Wednesday, the sharp rise in consumer prices in October had fueled concerns about an imminent tightening of monetary policy by the US Federal Reserve, which would weigh on the high valuations of many tech companies in particular.
On the Asian stock markets, too, the shock over the surprisingly high inflation in the USA seems to have subsided. The stock exchanges appear stronger. The Japanese Nikkei said goodbye to the weekend with an increase of 1.1 percent to 29,610 points.
“Of course, inflation is a risk to watch out for. But stock prices will only see a major crash if the Federal Reserve is completely wrong in its assessment and is forced to hike rates quickly. That is now.” not the case, “said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities.
The “anti-inflation currency” gold gives way slightly in the morning. The troy ounce currently costs just under $ 1,860, 0.1 percent less than the day before. The yellow precious metal is thus staying at its level, which has risen sharply since the US inflation figures were presented on Wednesday.
In the morning on the German stock market, the focus is on Deutsche Telekom. The continued booming business on both sides of the Atlantic has motivated the DAX group to raise its forecast for the operating result for the third time this year. Already yesterday evening, Telekom had surprisingly announced that it wanted to increase its dividend for the 2021 financial year from 4 to 64 cents.
There is a change of boss at the Volkswagen financial subsidiary. Christian Dahlheim, who was previously at the helm of Group Sales, will succeed Lars Henner Santelmann as CEO of Volkswagen Financial Services AG. Santelmann is leaving the company at his own request at the end of January 2022 to look for tasks in the environmental and nature conservation area.
In just a few days, several German stock exchanges will draw a line under trading in shares of the insolvent Wirecard AG. For example, Deutsche Börse and the Stuttgart Stock Exchange will cease trading in Wirecard shares at the end of November 15. For investors who still have the paper of the former DAX group in their custody account, it is becoming increasingly difficult to get rid of the share. Investor advocates recommend selling the shares.