The German stock market shakes off initial losses.
The DAX started trading with a minus of 0.7 percent at 14,979.81 points and thus below the psychologically important mark of 15,000 points. However, as it progresses, it can turn into profit. The TecDAX is now also increasing after starting trading 0.53 percent lower at 2,948.18 points.
“Interest rates remain the big spoilsport for the stock markets,” says portfolio manager Thomas Altmann from QC Partners to the German Press Agency. “With a 20-year term, the 5 is now in front of the decimal point for US government bonds. In this country, 3.2 percent for 20-year bonds means a new 12-year high.” In addition, the US budget dispute has only been temporarily resolved. There would still be “uncertainty at the wrong time”.Click here for the complete index overview
The European stock exchanges showed their friendly side on Wednesday.
For the EURO STOXX 50 It initially fell by 0.36 percent to 4,084.78 points. However, he can now record profits.
A look at the rising yields on European and US bonds is depressing the mood. There is also further calm in the US budget dispute that has just been postponed. The US House of Representatives surprisingly removed its Republican chairman Kevin McCarthy. Now there could be another shutdown in November.
Click here for the complete index overview
Wall Street starts higher in the middle of the week.
The Dow Jones Index was trading 0.10 percent higher at 33,034.18 points at the start of trading. The technology-heavy one NASDAQ Composite enters the session 0.26 percent higher at 13,092.92 units.
After the significant losses the previous day, there are signs of a solid start to trading on Wednesday. The focus is not only on the recently reached 16-year highs, but also on the significantly increased market interest rates, as well as an extensive range of economic data.
The stock markets had to absorb significant losses on Tuesday as yields on the bond market rose significantly again. The surprisingly robust Jolts data for US labor market exacerbated existing concerns about interest rate developments. This data suggests that the US economy remains strong despite the Fed’s sharp interest rate hikes. This gives the central bank leeway for a continued restrictive interest rate policy. The Fed is expected to keep interest rates high for an extended period of time to keep inflation in check.
The latest ADP jobs report for September, released just before the start of trading, shows that US private sector employment rose less than expected in September. Compared to the previous month, only 89,000 new jobs were created, while economists had forecast growth of 160,000 jobs. Attention now turns to the official labor market report for September, which will be released on Friday.
Also shortly after the start of trading, the purchasing managers’ index for the services sector for September (second reading), the data on new industrial orders for August and the ISM index for the non-manufacturing sector for September will be announced. Finally, the official EIA data on crude oil inventories will also be published.
Click here for the complete index overview
The stock exchanges in the Far East fell on Wednesday.
The leading index was in Tokyo Nikkei 2.28 percent to 30,526.88 points.
There was no trading in Shanghai on Wednesday either. Finally it closed Shanghai composite last Thursday with an increase of 0.10 percent at 3,110.48 units. In Shanghai, trade is suspended for the entire week because of the Mid-Autumn Festival or Golden Week celebrations. The Hang Seng Meanwhile, it lost 0.78 percent to 17,195.84 index points in the middle of the week.
The renewed sharp rise in US bond yields weighed on the Asian markets. There was also surprisingly strong data from the US labor market. There were more vacancies here in August than previously expected. This fueled interest rate hike speculation, triggering a sell-off in the bond market. In addition, the unprecedented move by the US House of Representatives to remove the Republican leader is weighing on the agenda. McCarthy lost an internal party power struggle. The shutdown that was recently averted through the adoption of a transitional budget could threaten to happen again in November.
Click here for the complete index overview