Status: 08/16/2022 07:49 a.m
With good guidance from Wall Street, the German stock market remains well supported and is working its way forward in small steps. The DAX is expected to be slightly higher.
Investors continue to show no weaknesses on the stock market. In the first indications, the DAX is increasing slightly and is thus staying above the 13,800 point mark. The index had already closed yesterday at 13,816 points above this mark. Tailwind is currently coming from New York, where prices have also increased.
Investors are currently ignoring the risks that still exist in the form of high inflation rates, the threat of further interest rate hikes or political conflicts. New indications, in particular on the further interest rates of companies, are expected on Wednesday after the US stock market close from the meeting minutes of the US Federal Reserve (Fed).
The reporting season for companies is now coming to an end, and there are only a few new quarterly figures on the agenda. Among other things, Delivery Hero opens his books.
Asia with no clear direction
The markets in Asia are struggling for orientation on Tuesday. Concerns about global growth coupled with optimism about a slowing US inflation that could dampen the pace of Fed interest rate hikes kept stock markets from finding common ground. The Nikkei index, which comprises 225 stocks, remained virtually unchanged over the course of the year at 28,856 points. The broader Topix Index is down 0.2 percent, last seen at 1981 points. The Chinese markets are trending slightly higher.
“The risks of a global recession have suddenly become much clearer. On the other hand, for some they have always been clear,” Rabobank wrote in a statement. “And does anyone think that turning around the central bank will make it less likely at this stage?”
Wall Street keeps climbing
At the beginning of the new week, the US stock markets continued their upward trend from Friday. The leading index Dow Jones climbed yesterday to its highest level in almost three and a half months and closed 0.45 percent higher at 33,912 points. The Nasdaq technology exchange also went up 0.6 percent, and the Nasdaq 100 selection index even gained 0.75 percent.
“The magnitude of this bear market rally has surprised many, including us,” Morgan Stanley market strategists wrote in a recent comment. The recovery was fueled by a combination of better-than-expected corporate earnings in the second quarter and continued hope that the US Federal Reserve would ease its monetary stance.
euros hardly changed
After the price slide from the previous day, the euro is trading at a lower level at $ 1.0159. The movements in Asian trade were also manageable. In the morning, the foreign exchange market is expecting the ZEW economic report from Germany, and then various US economic figures in the afternoon. Among other things, data on industrial production and capacity utilization in July.
Infineon boss sees no end to the semiconductor crisis
The head of the Munich chip group Infineon, Jochen Hanebeck, does not expect the semiconductor crisis to end quickly. The strong demand in electromobility and renewable energies come together, said Hanebeck, who has been CEO of Infineon since April. “We are stepping on the accelerator and expanding capacity, but it is uncertain whether we will be able to meet the high demand,” he told the “SZ”.
He is also worried about the escalation of the conflict over Taiwan. Europe is even more dependent on semiconductors from Taiwan than on energy from Russia, Hanebeck said. “For very sophisticated semiconductor products, such as processors for smartphones and the latest generation of microcontrollers for automotive applications, the dependency is very high.” There is no way to replace this production elsewhere on the necessary scale in the next five to ten years.
Investor Loeb inspires Disney course
Walt Disney shares closed 2 percent higher. The reason is the return of activist investor Dan Loeb to the entertainment group. Loeb announced that his investment firm Third Point had acquired a “significant stake” in Walt Disney in recent weeks. At the same time, he had called for major changes at the company, including a spin-off of sports network ESPN.
BHP earns well
High commodity prices have given Australian mining giant BHP a 26 percent jump in profits. Earnings for the fiscal year ended June 30, 2022 rose to $21.32 billion from $16.99 billion a year ago, the world’s largest mining group by market value said overnight.
BHP exceeded an analyst estimate of $20.89 billion. Tight supply and geopolitical tensions drove coal and copper prices. However, demand for iron ore in China has cooled as the crisis in the debt-ridden real estate sector and strict corona restrictions have slowed steel production in the world’s second largest economy. The final dividend of $1.75 per share is down from the previous fiscal year’s record of $2.00 per share.