Market report
Status: 10/14/2021 7:50 a.m.
According to market observations, the DAX will start trading today with price gains. The reporting season got off to a satisfactory start, and today the numbers continue.
The DAX should begin with a plus of 0.4 percent to 15,306 points. Yesterday, surprisingly good SAP figures caused a buying mood among investors, the DAX went out of trading with 0.7 percent plus. In the US, JPMorgan’s strong business figures were convincing.
After initial setbacks, the stock exchanges were able to make up a large part of their losses there. The S&P 500 index went out of trading with a plus of 0.3 percent to 4363 points. The technology-heavy Nasdaq index helped rise 0.8 percent to 14,562 points. The Dow Jones index, however, remained at 34,385 points.
What will the Fed do?
In addition to the beginning of the reporting season, the monetary policy of the US Federal Reserve (Fed) remains a determining topic. There were positive signals here for the financial markets: The minutes of the latest US Federal Reserve meeting, which were published the previous evening, indicated a slow pace for the expected reduction in bond purchases, according to the experts at Credit Suisse. That was well received on the market.
The Fed is currently buying $ 120 billion in government and mortgage bonds a month to prop up the pandemic economy, and could now start scaling back the volume from mid-November.
But of course there is room for interpretation and current US inflation data could point in the other direction: Goods and services cost 5.4 percent more in September than in the same month last year. Experts had expected 5.3 percent. Although it is not a large overshoot, the market seems to be more concerned in the face of persistently high inflation figures, said capital markets expert Caleb Thibodeau of analysts Validus Risk Management.
Inflation worries are also weighing on Asia, especially as Chinese producer prices rose the fastest since the record began in 1996. The Nikkei index, which comprises 225 values, was one percent higher at 28,426 points. The broader Topix index rose 0.3 percent and stood at 1980 points. The stock exchange in Shanghai, however, was 0.1 percent in the red. The index of the most important companies in Shanghai and Shenzen lost 0.4 percent.
The focus of investors today will be the bank balance sheets from the USA. Figures from Bank of America, Citigroup, Wells Fargo, and Morgan Stanley are expected. In terms of economic data, the weekly initial jobless claims and producer prices from the USA are pending.
The bottom line was that the Südzucker Group earned more in the first half of the financial year. In the six months to the end of August, shareholders accounted for a surplus of 49 million euros. Compared to the same period last year, that is almost twice as much. The sugar division returned to profitability in the second quarter of the business year. On Wednesday afternoon, the group had surprisingly increased its annual forecast.