market report
Status: 12/19/2022 7:46 a.m
The prospect of further rate hikes in the coming year continues to cloud investor sentiment. Nevertheless, the DAX starts a tentative attempt at stabilization in the morning. Can he finally catch himself now?
After the weak previous week, there are signs of stabilization on the German stock market. The DAX should start the new stock exchange week with a small premium after the big expiration day. The broker IG assesses the German standard values 0.3 percent higher at 13,930 points.
Recession fears reignited
In the previous week, the central banks in the US and the euro zone had caught investors on the wrong foot. Instead of the hoped-for monetary easing signals, the monetary watchdogs on both sides of the Atlantic continued to pursue a restrictive course and held out the prospect of further interest rate hikes in the coming year. Fed Chair Jerome Powell even announced that he intends to go beyond the 5 percent mark.
This had fueled recession fears on the markets. “There is concern that if the Fed continues to hike rates, the economy will continue to slow,” said Robert Pavlik, portfolio manager at wealth manager Dakota Wealth.
200-day moving average in the DAX
The reaction of the stock exchanges was correspondingly clear. The DAX fell by 3.3 percent on a weekly basis. The interim rise to a high of 14,675 points since June must therefore be regarded as a failed breakout. Only a few trading days were enough to erase all price gains since mid-November in one fell swoop.
The technical picture in the DAX has deteriorated drastically with the completed price slump. The next important support zone can only be identified again at around 13,500 points; the 200-day moving average also runs here. The moving average of the past 200 trading days is considered an important indicator of the long-term trend.
Nasdaq and Dow with heavy losses
The important US indices had also extended their correction before the weekend. According to Credit Suisse, the market continues to price in the unexpectedly restrictive monetary policy signals from the US Federal Reserve.
The Dow Jones index of standard values closed 0.9 percent lower at 32,920 points. The broad S&P 500 lost 1.1 percent to 3852 points. The tech-heavy Nasdaq fell 1.0 percent to 10,705 points. He lost around 2.8 percent on a weekly basis. Growth stocks are considered to be particularly sensitive to interest rates.
Asian stock markets on the dive
Threatened rate hikes spoil the festive mood for investors in Asia. The prospect of further interest rate hikes in the coming year is also dampening the buying mood on the Asian markets at the beginning of the week. The Nikkei index, which comprises 225 stocks, was down 1.1 percent at 27,238 points at the close in Tokyo. The Shanghai stock exchange was down 1.1 percent. The index of the most important companies in Shanghai and Shenzhen lost 0.7 percent.
Euro back above $1.06
In Asian foreign exchange trading, the European common currency can recapture the 1.06 dollar mark. One euro currently pays 1.0607 dollars. An ounce of gold currently costs $1791.
Porsche shares in the DAX for the first time today
In the DAX, the Porsche share attracts the attention of investors in the morning. The shares of the Stuttgart sports car manufacturer are now being traded in the DAX for the first time. The shares of the Volkswagen subsidiary replace the papers of the Franconian sporting goods manufacturer Puma, which is relegated to the MDAX small-cap index. Porsche shares have gained around 13 percent since going public.
Adidas and Nike reject criticism of leather supply chains
Sporting goods manufacturer Adidas and its competitor Nike have dismissed criticism of their leather supply chains. “We source the leather used to manufacture our products from verified tanneries that meet the highest standards in the industry,” an Adidas spokesman said on Friday.
New VW supervisor defends herself against critics
The green VW supervisory board member Julia Willie Hamburg is self-confident after the partly personal attacks because of her new function in the control body of the largest European car manufacturer. “I will do what corresponds to the role of the supervisory board,” she told the German Press Agency.
Uniper shareholders should approve the rescue package
At an extraordinary general meeting today, Uniper shareholders are to vote online on rescuing the ailing energy company with the help of extensive nationalization. It’s about a billion-euro rescue package that should prevent a collapse of Germany’s largest gas importer.
Musk lets Twitter users vote on his chief post
Tech multi-billionaire Elon Musk lets Twitter users vote on his chief post at the short message service. The US short message service had previously announced that it would ban its users from advertising competing online platforms in the future, drawing renewed criticism.
Musk’s “Twitter escapades” also a danger for Tesla?
The car expert Ferdinand Dudenhöffer also sees a threat to Tesla’s success in view of the disputes surrounding the Twitter platform after the takeover by Elon Musk. “With his autocratic demeanor, Musk is becoming more and more of a risk for Tesla and Grünheide,” Dudenhöffer told the Märkische Oderzeitung newspaper.